What Is the Nature of the Positive Externality Associated with Research

question 23

Multiple Choice

What is the nature of the positive externality associated with research and development (R&D) ?

• A) Firms that engage in R&D may develop more profitable products.
• B) Firms that engage in R&D may be able to lower their production costs.
• C) R&D may lead to discoveries that make other firms more innovative.
• D) Firms that engage in R&D tend to pay higher stock dividends.

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Definitions:

Prostitution

The profession or act of participating in sexual activities in exchange for money.

Prostitution

Engaging in sexual behaviors in return for monetary remuneration.

Prevalence

A statistical measure that indicates how common a particular condition, behavior, or phenomenon is within a specific population or area at a certain time.

Legalization

The process of making something that was previously illegal permissible by law.