Which of the Following Statements Is True of Research and Development

Multiple Choice

Which of the following statements is true of research and development (R&D) ?

A) Small volumes of production enable firms to spread the cost of research and development (R&D) , advertising, and general and administrative expenses.
B) The higher a firm's R&D costs, the more the scope for the company to expand globally allowing costs to be spread across more customers.
C) Adding R&D allows a firm to have a cost advantage over competitors.
D) Eliminating R&D helps firms to lead in launching new product designs.