Assume That a Firm's Interest-Rate Cost-Of-Funds Curve for R&D Is

question 77

Multiple Choice

Assume that a firm's interest-rate cost-of-funds curve for R&D is perfectly elastic.Which of the following would increase a firm's optimal R&D expenditures and, in equilibrium, reduce the expected rate of return on the last dollar of R&D?

• A)a rightward shift of the expected-rate-of-return curve
• B)an upward shift of the interest-rate cost-of-funds curve
• C)a leftward shift of the expected-rate-of-return curve
• D)a downward shift of the interest-rate cost-of-funds curve

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Definitions:

Nature of Work

The inherent characteristics, requirements, and expectations associated with a specific job or task.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow in 1943, which outlines a five-tier model of human needs, arranged in a hierarchy.

First Level

The initial or elementary stage in a series or categorization system.

Physical and Economic Survival

The requirement for basic necessities that sustain life and the financial means to secure these necessities.