One Reason That Investment in Innovation Is Often Considered to Have

question 75

Multiple Choice

One reason that investment in innovation is often considered to have increasing marginal returns is because

• A)new products increase firms' profits.
• B)R&D costs are negligible relative to firms' total costs.
• C)innovation is mostly through "leaning by doing."
• D)new ideas or innovations can spawn ever further new ideas and innovations.
• E)after the initial investment is made,subsequent investors face more difficult and expensive production problems.

---

Definitions:

Tax Bill

A statement from a governmental authority detailing the amount of taxes owed by an individual or entity, specifying due dates and payment instructions.

Proration

The act of distributing or assigning an amount in proportion to a certain measure, often applied in finance and accounting for dividing expenses or revenues.

Taxable Year

A 12-month period for which tax returns are calculated and filed, often aligning with the calendar year or a company’s fiscal year.

Property Taxes

Taxes imposed by local governments on the value of real estate property, which fund public services such as schools, roads, and emergency services.