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:

Seventh President

Andrew Jackson, who served as the President of the United States from 1829 to 1837, known for his populist policies and the Indian Removal Act.

Analytic Intelligence

A form of intelligence that involves abstract planning, strategy selection, focused attention, and information processing, as well as verbal and logical skills.

Abstract Planning

The process of thinking about actions or decisions in a way that is not tied to concrete, tangible objects or events but involves conceptual or theoretical ideas.

Verbal Skills

The abilities related to the use and understanding of words and language, including speaking, writing, and reading.