Research and development ________ create an external benefit.With no intervention,we produce too ________ research and development.
A)does;little
B)does not;much
C)does not;little
D)does;much
E)none of the above.Research and development create an external cost.

Question

Quizplus · Accepted Answer

Research and development (R&D) often create external benefits, such as technological advancements that can be utilized by others beyond the original developers. Without government or external intervention, the market tends to produce too little R&D because private entities may not capture the full value of their investment, leading to underinvestment in R&D activities.

Research and Development ________ Create an External Benefit