An Amount of R&D Spending That Is Greater Than the Optimal

Multiple Choice

An amount of R&D spending that is greater than the optimal amount indicates that the

A) marginal benefit of R&D expenditures is equal to the marginal cost.
B) marginal benefit of R&D expenditures is greater than the marginal cost.
C) interest-rate cost-of-funds is less than the expected rate of return.
D) interest-rate cost-of-funds is greater than the expected rate of return.