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:

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Government programs designed to support the well-being of the population by providing financial aid, healthcare, and other services to those in need.

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An American politician who served as the 42nd president of the United States from 1993 to 2001, known for his centrist policies and leadership during the country's longest period of peacetime economic expansion.

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Measures taken to increase the representation of women and minorities in areas of employment, education, and business from which they have been historically excluded.

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Professionals who study human society and social relationships, employing methods and theories from disciplines such as sociology, anthropology, and psychology.