Firms are more likely to devote resources to research and development when
A) the country is in recession.
B) they expect to earn rewards from successful research and development.
C) it is easy to copy new techniques of other firms.
D) the country has been experiencing slow economic growth in order to spur economic growth.

Question

Quizplus · Accepted Answer

Firms are more likely to invest in research and development when they expect to earn rewards from successful research and development. This is because they see a potential return on their investment, which justifies the cost and effort of conducting research and development.

Firms Are More Likely to Devote Resources to Research and Development