Which of the following is a true statement regarding research and development?
A) R&D investments produce equivalent profits.
B) Research refers to incremental changes in product design.
C) The law of diminishing returns applies to R&D investments.
D) Development refers to basic product explorations undertaken by a firm.

Question

Quizplus · Accepted Answer

The law of diminishing returns applies to R&D investments, meaning that the more a company invests in R&D, the less additional benefit or profit it receives. This is because at a certain point, the costs of R&D may outweigh the benefits. A, B, and D are not true statements regarding research and development.

Which of the Following Is a True Statement Regarding Research