Solved

The Table Shows the Rate of Return and R&D Spending

Question 133

Multiple Choice

The table shows the rate of return and R&D spending for a hypothetical firm. Assume the interest-rate cost of funds is 8 percent. What will be the marginal cost and the marginal benefit of the optimal amount of R&D spending? A) MC = 8 percent; MB = 6 percent B) MC = 8 percent; MB = 8 percent C) MC = 6 percent; MB = 8 percent D) MC = 6 percent; MB = 6 percent The table shows the rate of return and R&D spending for a hypothetical firm. Assume the interest-rate cost of funds is 8 percent. What will be the marginal cost and the marginal benefit of the optimal amount of R&D spending?


A) MC = 8 percent; MB = 6 percent
B) MC = 8 percent; MB = 8 percent
C) MC = 6 percent; MB = 8 percent
D) MC = 6 percent; MB = 6 percent

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q128: Suppose that Marlen Fisher has legal protection

Q129: One of the advantages of being first

Q130: Assume a firm faces these costs: total

Q131: The following can increase the profits of

Q132: "Intrapreneurs" is the term sometimes used to

Q134: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" Refer to the

Q135: Entrepreneurs<br>A)work exclusively in government and university R&D

Q136: The introduction of the iPhone by Apple

Q137: As it relates to the R&D decision,

Q138: A major source of funding of R&D