In the Diagram, at $10 Million of R&D Expenditure, the

Multiple Choice

In the diagram, at $10 million of R&D expenditure, the

A) expected rate of return exceeds the interest-rate cost of funds.
B) firm is spending an optimal amount on R&D.
C) interest-rate cost of funds exceeds the expected rate of return.
D) marginal benefit of R&D is less than the marginal cost of R&D.