If the Marginal Revenue from R&D Is Less Than the Marginal

question 41

Multiple Choice

If the marginal revenue from R&D is less than the marginal cost, a profit-maximizing firm will

• A) decrease the amount it spends on R&D.
• B) increase the amount it spends on R&D.
• C) leave unchanged the amount it spends on R&D.
• D) stop spending on R&D altogether.
• E) probably decrease its spending or R&D, but it may increase it.

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Definitions:

Prenatal Development

The progression of maturation and evolution inside the uterus from the moment of conception until delivery.

Neural Tube

The tubular structure formed early in the embryonic stage from which the central nervous system (brain and spinal cord) develops.

Embryonic

Pertaining to the earliest stage of development in plants and animals after fertilization, before becoming a fetus.

Human Childhood

A developmental stage in humans characterized by growth, learning, and socialization from infancy through adolescence.