Assume that a firm's interest-rate cost-of-funds curve for R&D is perfectly elastic.Which of the following would decrease a firm's optimal R&D expenditures and,in equilibrium,increase the expected rate of return on the last dollar of R&D?
A) A rightward shift of the expected-rate-of-return curve.
B) An upward shift of the interest-rate cost-of-funds curve.
C) A leftward shift of the expected-rate-of-return curve.
D) A downward shift of the interest-rate cost-of-funds curve.

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The Answer of Assume that a firm's interest-rate cost-of-funds curve for R&D is perfectly elastic.Which of the following would decrease a firm's optimal R&D expenditures and,in equilibrium,increase the expected rate of return on the last dollar of R&D?
A) A rightward shift of the expected-rate-of-return curve.
B) An upward shift of the interest-rate cost-of-funds curve.
C) A leftward shift of the expected-rate-of-return curve.
D) A downward shift of the interest-rate cost-of-funds curve.

Assume That a Firm's Interest-Rate Cost-Of-Funds Curve for R&D Is