Because Firms Can Free Ride on the Research and Development

question 163

Multiple Choice

Because firms can free ride on the research and development of other firms

• A)firms choose a level of research and development where the marginal cost of research is equal to the economy's marginal return of research.
• B)firms choose a level of research and development where the marginal cost of research is above the economy's marginal return of research.
• C)firms choose a level of research and development where the marginal cost of research is below the economy's marginal return of research.
• D)firms choose a level of research and development where the marginal cost of research is below the individual firm's marginal return of research.

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Definitions:

Work Environment Characteristics

The various physical and psychological aspects of a workplace, including its atmosphere, culture, and conditions that influence employee satisfaction and productivity.

LMX Theory

Leader-Member Exchange Theory explores how leaders and managers develop relationships with team members and how these relationships can either contribute to growth or hinder progress.

Leader and Follower Interaction

The dynamic relationship between those who guide or influence others and those who are guided or influenced within an organizational or social context.

Substitutes for Leadership

Factors in the workplace environment that diminish the importance of leadership, such as structured tasks or intrinsic motivated teams.