An Amount of R&D Spending That Is Greater Than the Optimal

question 69

Multiple Choice

An amount of R&D spending that is greater than the optimal amount indicates that the

• A) marginal benefit of R&D expenditures is equal to the marginal cost.
• B) marginal benefit of R&D expenditures is greater than the marginal cost.
• C) interest-rate cost-of-funds is less than the expected rate of return.
• D) interest-rate cost-of-funds is greater than the expected rate of return.

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