As it relates to R&D, the expected-rate-of-return curve, r,
A)usually slopes upward.
B)shows the cost of financing various levels of R&D.
C)varies in location depending on the location of the interest-rate cost-of-funds curve, i.
D)represents the marginal benefit element in the MB = MC decision framework.

Question

Quizplus · Accepted Answer

The expected-rate-of-return curve represents the marginal benefit of R&D investments, which is compared to the marginal cost in the MB = MC decision framework.

As It Relates to R&D, the Expected-Rate-Of-Return Curve, R