The Conjecture That R&D Expenditures as a Percentage of Firms

question 194

Multiple Choice

The conjecture that R&D expenditures as a percentage of firms' sales first rise, reach a peak, and then fall as industry concentration rises is known as the

• A) inverted-U theory of R&D.
• B) average product of R&D theory.
• C) bell-shaped-curve theory of product innovation.
• D) theory of increasing and diminishing returns.

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