In the graph, the difference between points d and e indicates that at $50M of R&D spending, the
A)marginal cost is greater than the marginal benefit. Thus, R&D spending should be reduced.
B)marginal cost is less than the marginal benefit. Thus. R&D spending should be reduced.
C)marginal cost is greater than the marginal benefit. Thus, R&D spending should be increased.
D)marginal cost is less than the marginal benefit. Thus, R&D spending should be increased.

Question

In the graph, the difference between points d and e indicates that at $50M of R&D spending, the
A)marginal cost is greater than the marginal benefit. Thus, R&D spending should be reduced. 
B)marginal cost is less than the marginal benefit. Thus. R&D spending should be reduced. 
C)marginal cost is greater than the marginal benefit. Thus, R&D spending should be increased. 
D)marginal cost is less than the marginal benefit. Thus, R&D spending should be increased.

Quizplus · Accepted Answer

The Answer of  In the graph, the difference between points d and e indicates that at $50M of R&D spending, the
A)marginal cost is greater than the marginal benefit. Thus, R&D spending should be reduced. 
B)marginal cost is less than the marginal benefit. Thus. R&D spending should be reduced. 
C)marginal cost is greater than the marginal benefit. Thus, R&D spending should be increased. 
D)marginal cost is less than the marginal benefit. Thus, R&D spending should be increased.

In the Graph, the Difference Between Points D and E