The optimal private investment in R&D would likely be __________ the optimal social investment.
A) the same as
B) less than
C) greater than
D) half of

Question

Quizplus · Accepted Answer

Private investors may only consider the potential profits from their R&D investment, whereas social investors would also consider the broader benefits to society such as advances in healthcare or clean energy. Therefore, the optimal private investment in R&D would likely be less than the optimal social investment.

The Optimal Private Investment in R&D Would Likely Be __________