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In the Graph, the Difference Between Points D and E

Question 215

Multiple Choice

  In the graph, the difference between points d and e indicates that at $50M of R&D spending, the A) marginal cost is greater than the marginal benefit. Thus, R&D spending should be reduced. B) marginal cost is less than the marginal benefit. Thus. R&D spending should be reduced. C) marginal cost is greater than the marginal benefit. Thus, R&D spending should be increased. D) marginal cost is less than the marginal benefit. Thus, R&D spending should be increased. In the graph, the difference between points d and e indicates that at $50M of R&D spending, the


A) marginal cost is greater than the marginal benefit. Thus, R&D spending should be reduced.
B) marginal cost is less than the marginal benefit. Thus. R&D spending should be reduced.
C) marginal cost is greater than the marginal benefit. Thus, R&D spending should be increased.
D) marginal cost is less than the marginal benefit. Thus, R&D spending should be increased.

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