Assume That a Firm's Interest-Rate Cost-Of-Funds Curve for R&D Is

question 206

Multiple Choice

Assume that a firm's interest-rate cost-of-funds curve for R&D is perfectly elastic. Which of the following would decrease a firm's optimal R&D expenditures and, in equilibrium, increase the expected rate of return on the last dollar of R&D?

• A)a rightward shift of the expected-rate-of-return curve
• B)an upward shift of the interest-rate cost-of-funds curve
• C)a leftward shift of the expected-rate-of-return curve
• D)a downward shift of the interest-rate cost-of-funds curve

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Definitions:

Geocentric

Geocentric pertains to considering Earth as the center, or in business, it represents a global approach where policies and practices are applied universally across a multinational company, disregarding national boundaries.

Human Resources

The department within an organization that is responsible for managing employee-related functions, such as hiring, training, and benefits.

Headquarters-Centered

A management approach or organizational structure in which decision-making authority, corporate culture, and major activities are centralized at the main office or headquarters.

Ethnocentric

A perspective that evaluates other cultures according to the standards of one's own culture, often regarding them as inferior.