The Expected-Rate-Of-Return Curve for R&D Expenditures of a Firm Slopes

question 235

Multiple Choice

The expected-rate-of-return curve for R&D expenditures of a firm slopes downward because of

• A)diminishing marginal returns from R&D activities.
• B)economies of scale in R&D projects.
• C)average fixed costs of R&D projects.
• D)the law of supply for R&D expenditures.

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Definitions:

Preferences

Refers to the subjective tastes and desires of consumers which influence their choices and decision-making in purchasing goods and services.

Political Logrolling

A practice where politicians exchange favors by supporting each other's proposals or policies.

Vote Trading

An agreement between two or more parties to swap votes on issues of mutual interest, to achieve a desired outcome for both sides.

Efficient

The optimal use of resources to achieve the desired outcome with minimal waste or expense.