In general, which of the following is true?
A) the number of firms in the industry is far more important than the industry's scientific character and extent of technological opportunities.
B) the greater an industry's concentration ratio, the higher are its R&D expenditures in relation to sales.
C) the industry's scientific character and extent of technological opportunities often are more important than the industry's concentration ratio.
D) the higher the industry's interest cost of borrowing funds for R&D, the greater is the industry's progressiveness.

Question

Quizplus · Accepted Answer

The question asks which statement is generally true, and option C is the most accurate. While the number of firms in an industry can be a factor in determining R&D expenditures, the scientific character and technological opportunities play a more significant role. A higher concentration ratio may or may not lead to higher R&D expenditures. Option D is incorrect as the interest cost of borrowing funds for R&D is not necessarily an indicator of an industry's progressiveness.

In General, Which of the Following Is True