Besides market structure, another factor that seems to influence the level of R&D spending in an industry is the
A) number of firms in the industry.
B) length of time for government patents.
C) scientific character of the industry.
D) imitation problem in the industry.

Question

Quizplus · Accepted Answer

The scientific character of the industry refers to the nature of the research involved in the industry, and industries that rely on cutting-edge research and technology tend to have higher R&D spending. Therefore, it is likely to be a significant factor that affects the level of R&D spending in an industry. Factors like the number of firms, length of time for government patents, and imitation problems can also impact R&D spending, but it is not as directly related as the scientific character of the industry.

Besides Market Structure, Another Factor That Seems to Influence the Level