Firms Are More Likely to Devote Resources to Research and Development

question 59

Multiple Choice

Firms are more likely to devote resources to research and development when

• A) the country is in recession.
• B) they expect to earn rewards from successful research and development.
• C) it is easy to copy new techniques of other firms.
• D) the country has been experiencing slow economic growth in order to spur economic growth.

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Definitions:

Purely Competitive

Market structures characterized by a large number of small firms, a homogeneous product, and easy entry and exit that ensures no single buyer or seller can influence the market.

Wage Rate

The standardized amount of pay given to an employee per unit of time or piece of work completed, often influenced by market conditions, skill level, and experience.

Purely Competitive

An economic market structure characterized by many buyers and sellers, homogeneous products, and no single participant having a significant influence on price.

Wage Rate

The amount of compensation a worker receives per unit of time (e.g., hour, day) or per task completed.