How does the cost of financial capital influence innovative research and development activities in a competitive market? at a high cost, firms demand a large quantity, as R&D projects return high rates at a low cost, firms demand a large quantity, as R&D projects will likely return a higher rate O financial capital at a high cost means more projects are likely to pay a much higher return rate at a low cost, the firm receives only small private benefits from investing in R&D
How does the cost of financial capital influence innovative research and development activities in a competitive market? at a high cost, firms demand a large quantity, as R&D projects return high rates at a low cost, firms demand a large quantity, as R&D projects will likely return a higher rate O financial capital at a high cost means more projects are likely to pay a much higher return rate at a low cost, the firm receives only small private benefits from investing in R&D
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter13: Positive Externalities And Public Goods
Section: Chapter Questions
Problem 18CTQ: Is it inevitable that government must become involved in supporting investments in new technology?
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