Asked by

Betty Acquah
on Nov 26, 2024

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As it relates to R&D, a firm's expected-rate-of-return-curve, r,

A) slopes downward because the firm arrays, highest to lowest, the rates of return on R&D activities.
B) slopes upward because of the law of diminishing returns.
C) is a horizontal line.
D) depends on whether it borrows from the bank or uses retained earnings in financing R&D.

Expected-Rate-of-Return-Curve

A graphical representation showing the range of possible outcomes for the return on an investment and their associated probabilities.

Law of Diminishing Returns

An economic principle stating that if one factor of production is increased while others are held constant, the overall return will eventually decrease after a certain point.

Financing R&D

The process of providing funds for research and development activities, typically to develop new products, services, or technologies.

  • Explain the strategic process involved in allocating funds for research and development.
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lady samantha dullaNov 28, 2024
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