The Expected-Rate-Of-Return Curve for R&D Expenditures of a Firm Slopes

question 76

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.

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Definitions:

Behavioral Style

The characteristic way in which an individual reacts and interacts with the environment, often consistent across different situations.

Personal Responsibility

The idea that individuals are accountable for their own actions and wellbeing, including taking charge of their life decisions and accepting the consequences.

Pride

A sense of profound contentment that comes from personal accomplishments, the successes of close associates, or from having qualities or belongings that are greatly esteemed.

Shame

A discomforting sensation of shame or upset stemming from an awareness of improper or silly actions.