All of the following increase the expected rate of return on R&D expenditures except
A) patents.
B) trademarks.
C) imitation by others.
D) trade secrets.

Question

Quizplus · Accepted Answer

Imitation by others reduces the expected rate of return on R&D expenditures, as it allows competitors to enter the market with similar products without incurring the same costs and risks. Patents, trademarks, and trade secrets, on the other hand, provide legal protection and make it more difficult for others to copy and imitate the innovations, which increases the expected rate of return on R&D expenditures.

All of the Following Increase the Expected Rate of Return