An Amount of R&D Spending That Is Greater Than the Optimal

question 43

Multiple Choice

An amount of R&D spending that is greater than the optimal amount indicates that the

• A)marginal benefit of R&D expenditures is equal to the marginal cost.
• B)marginal benefit of R&D expenditures is greater than the marginal cost.
• C)interest-rate cost-of-funds is less than the expected rate of return.
• D)interest-rate cost-of-funds is greater than the expected rate of return.

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Definitions:

Cumulative Share

The total percentage or portion of something that accumulates over time or through successive additions.

Families Earned

Refers to the income generated by household members through employment or other sources of earnings.

Income

Financial earnings received by an individual or entity, typically measured over a set period and derived from work, investments, or other sources.

Perfect Equality Line

In the context of income distribution, a theoretical line indicating equal income or wealth distribution among all participants.