Because Firms Can Free Ride on the Research and Development

Multiple Choice

Because firms can free ride on the research and development of other firms

A) firms choose a level of research and development where the marginal cost of research is equal to the economy's marginal return of research.
B) firms choose a level of research and development where the marginal cost of research is above the economy's marginal return of research.
C) firms choose a level of research and development where the marginal cost of research is below the economy's marginal return of research.
D) firms choose a level of research and development where the marginal cost of research is below the individual firm's marginal return of research.