The Table Shows the Rate of Return and R&D Spending

question 150

Multiple Choice

The table shows the rate of return and R&D spending for a hypothetical firm. Assume the interest-rate cost of funds is 9 percent. What will be the marginal cost and the marginal benefit of the optimal amount of R&D spending?

• A)MC = 5 percent; MB = 9 percent
• B)MC = 9 percent; MB = 9 percent
• C)MC = 9 percent; MB = 13 percent
• D)MC = 5 percent; MB = 5 percent

---

Definitions:

Underlying Infection

A hidden infection that is present but may not be the immediate cause of symptoms, often complicating or causing other medical conditions.

Staphylococcus Aureus

A type of bacteria that can cause skin infections, pneumonia, and other conditions.

Bacterial Infection

An infection caused by harmful bacteria entering and multiplying in the body.

Bubonic Plague

An infectious disease caused by the bacterium Yersinia pestis, characterized by swollen lymph nodes, fever, and skin sores. Historically known as "Black Death."