Because of the Kind of Externalities That Tend to Be

question 124

Multiple Choice

Because of the kind of externalities that tend to be generated from general R&D resources bought by firms, the equilibrium price of R&D:

• A) is above the optimal level, and quantity is below the optimal level.
• B) is below the optimal level, and quantity is above the optimal level.
• C) and quantity of R&D are both above the optimal level.
• D) and quantity of R&D are both below the optimal level.
• E) must fall in order for the market to reach equilibrium.

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Definitions:

Human Perception

The process by which humans interpret and make sense of sensory information.

Sound's Wavelength

The distance between two consecutive peaks or troughs in a sound wave, determining the sound's pitch.

Sound's Frequency

The number of vibrations or cycles per second of a sound wave, which determines the pitch of the sound.

High-Frequency

Refers to electromagnetic waves with very short wavelengths and high rates of oscillation or vibration.