US Firms Collectively Devote the Largest Portion of Their Total

question 164

Multiple Choice

U.S. firms collectively devote the largest portion of their total R&D spending to

• A) applied research (pursuing invention).
• B) basic scientific research.
• C) innovation and diffusion.
• D) financing start-up firms.

---

Definitions:

Short Run

A time period in economics during which some factors of production are fixed, influencing decisions on production and costs.

Plant Size

Refers to the physical capacity or scale of a manufacturing facility, which can affect production efficiency, costs, and the firm's ability to satisfy market demand.

Long Run

A period in which all factors of production and costs are variable, allowing for all adjustments to be made within an economy or firm.

Fixed Input

Inputs used in production that cannot be varied in the short term, such as buildings or machinery.