In the graph, the difference between points a and b indicates that at $10M of R&D spending, the
A)marginal cost is greater than the marginal benefit.
B)marginal benefit is greater than the marginal cost.
C)interest-rate cost-of-funds is equal to the expected rate of return.
D)interest-rate cost-of-funds is greater than the expected rate of return.

Question

In the graph, the difference between points a and b indicates that at $10M of R&D spending, the
A)marginal cost is greater than the marginal benefit. 
B)marginal benefit is greater than the marginal cost. 
C)interest-rate cost-of-funds is equal to the expected rate of return. 
D)interest-rate cost-of-funds is greater than the expected rate of return.

Quizplus · Accepted Answer

The Answer of  In the graph, the difference between points a and b indicates that at $10M of R&D spending, the
A)marginal cost is greater than the marginal benefit. 
B)marginal benefit is greater than the marginal cost. 
C)interest-rate cost-of-funds is equal to the expected rate of return. 
D)interest-rate cost-of-funds is greater than the expected rate of return.

In the Graph, the Difference Between Points a and B