Other things equal, the prospect of imitation by others:
A. decreases the expected rate of return on R&D expenditures.
B. increases the expected rate of return on R&D expenditures.
C. increases the interest-rate cost of funds used to finance R&D expenditures.
D. decreases the interest-rate cost of funds used to finance R&D expenditures.
Answer: A
Economics
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The stable, long-run equilibrium in a competitive market occurs when the market price equals the lowest point on a firm's average total cost curve
a. True b. False Indicate whether the statement is true or false
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