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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