In the Inverted-U Theory of R&D

question 132

Multiple Choice

In the inverted-U theory of R&D,

• A) process innovation and product innovation are inversely related.
• B) technological change is inversely related to scientific discovery.
• C) R&D expenditures rise continuously as a percentage of firms' sales as industry concentration rises.
• D) R&D expenditures first rise as a percentage of firms' sales as industry concentration increases, but then fall as higher industry concentration occurs.

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