Because Firms Can Free Ride on the Research and Development

question 163

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.

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Definitions:

Primary Market Impact

The effect on the issuance and sale of new securities directly between issuers and investors, influencing initial pricing and availability.

Wicked Problems

Complex issues that are difficult to define and solve because they are interconnected with other problems and have multiple stakeholder perspectives with differing priorities.

Urban

Relating to, characteristic of, or situated in a city or town.

Governmental Planning

The process by which governmental bodies set goals, establish priorities, and develop strategies to achieve desired outcomes for communities or nations.