Because firms can free ride on the research and development of other firms
A) firms choose a level of research and development where the marginal cost of research is above the economy's marginal return of research.
B) firms choose a level of research and development where the marginal cost of research is equal to the economy's marginal return of research.
C) firms choose a level of research and development where the marginal cost of research is below the economy's marginal return of research.
D) firms choose a level of research and development where the marginal cost of research is below the individual firm's marginal return of research.
C
You might also like to view...
The Sherman Antitrust Act of 1890 was followed almost immediately in the 1890s by the largest merger movement ever known by Americans up to that point in U.S. history
Indicate whether the statement is true or false
If the price index in year A is 130, this means that:
A. Prices in year A are on average 130 percent higher than in the base year B. Prices in year A are on average13 times that in the base year C. Prices in year A are on average 30 percent higher than in the base year D. Nominal GDP is 130 percent higher than real GDP in year A