In the diagram, at $10 million of R&D expenditure, the
A)expected rate of return exceeds the interest-rate cost of funds.
B)firm is spending an optimal amount on R&D.
C)interest-rate cost of funds exceeds the expected rate of return.
D)marginal benefit of R&D is less than the marginal cost of R&D.

Question

In the diagram, at $10 million of R&D expenditure, the
A)expected rate of return exceeds the interest-rate cost of funds. 
B)firm is spending an optimal amount on R&D. 
C)interest-rate cost of funds exceeds the expected rate of return. 
D)marginal benefit of R&D is less than the marginal cost of R&D.

Quizplus · Accepted Answer

The Answer of  In the diagram, at $10 million of R&D expenditure, the
A)expected rate of return exceeds the interest-rate cost of funds. 
B)firm is spending an optimal amount on R&D. 
C)interest-rate cost of funds exceeds the expected rate of return. 
D)marginal benefit of R&D is less than the marginal cost of R&D.

In the Diagram, at $10 Million of R&D Expenditure, the