Which of the Following Statements Is True of Research and Development

question 25

Multiple Choice

Which of the following statements is true of research and development (R&D) ?

• A)Small volumes of production enable firms to spread the cost of research and development (R&D), advertising, and general and administrative expenses.
• B)The higher a firm's R&D costs, the more the scope for the company to expand globally allowing costs to be spread across more customers.
• C)Adding R&D allows a firm to have a cost advantage over competitors.
• D)Eliminating R&D helps firms to lead in launching new product designs.

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Definitions:

Outgroup Derogation

A psychological phenomenon where people tend to view and judge members of a group to which they do not belong less favorably than their own group (ingroup).

Self-Serving Attributions

A cognitive bias where individuals attribute their successes to internal or personal factors while attributing failures to external or situational factors.

Implicit Prejudice

Negative attitudes or affective reactions associated with an outgroup, for which the individual has little or no conscious awareness and which can be automatically activated in intergroup encounters.

Unconsciously

The process of thoughts, feelings, or behaviors occurring without conscious awareness or intention by the individual.