The private return from research and development might be less than the social return because:
A)others than just the inventor can use inventions that come out of research and development.
B)it is encouraged by patents and copyrights.
C)it is funded by the government.
D)all of the above.

Question

Quizplus · Accepted Answer

Others besides the inventor can benefit from research and development, such as competitors who can imitate the innovation. This means that the social return from the innovation is greater than the private return, which only reflects the benefits to the inventor. Patents and copyrights do encourage innovation, but they do not directly affect the ratio of private to social return. Government funding of research and development may increase the total amount of innovation, but it does not necessarily affect the ratio of private to social return.

The Private Return from Research and Development Might Be Less