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.