Suppose Scientific Research Generates External Benefits

question 88

Multiple Choice

Suppose scientific research generates external benefits. Without government intervention, the market for scientific research would

• A) produce some research, but less than the efficient amount.
• B) produce more than the efficient amount.
• C) produce the efficient amount.
• D) produce zero research.
• E) either produce more than or less than the efficient amount depending on whether the external benefit is on the production or consumption of the research.

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Definitions:

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a feeling of contempt for other cultures.

Internationalization

The process of increasing involvement of enterprises in international markets.

Exporting

The act of selling goods or services produced in one country to another country.

New Markets

Refers to previously unexplored or unengaged customer segments or geographic areas that a business aims to enter.