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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