As it relates to R&D, the expected-rate-of-return curve, r,
A) usually slopes upward.
B) shows the cost of financing various levels of R&D.
C) varies in location depending on the location of the interest-rate cost-of-funds curve, i.
D) represents the marginal benefit element in the MB = MC decision framework.

Question

Quizplus · Accepted Answer

The expected-rate-of-return curve represents the marginal benefit (MB) of R&D investments, which is compared to the marginal cost (MC) to make investment decisions.

As It Relates to R&D, the Expected-Rate-Of-Return Curve, R