Basic Research Is More Likely to Be Funded by the Federal

Basic research is more likely to be funded by the federal than by state and local government because basic research:

A) is usually conducted by oligopoly, the market structure that is most conducive to preliminary research.
B) has negative externalities that are passed on to those who live outside the state.
C) is largely a public good; benefits flow to the whole world, not just the state.
D) has informational problems that cause adverse selection.