Question 1

An amount of R&D spending that is less than the optimal amount indicates that the

Accepted Answer

A)  interest-rate cost-of-funds and expected rate of return are constant.
B)  interest-rate cost-of-funds is equal to the expected rate of return.
C)  interest-rate cost-of-funds is less than the expected rate of return.
D)  interest-rate cost-of-funds is greater than the expected rate of return.E) All of the above
F) B) and D)

Question 2

R&D spending decisions by firms are complicated because they involve having to compare present expenditures against future expected gains.

Accepted Answer

A) True 
 B)False

Question 3

A firm decides to make a $20 million expenditure on research and development that will create a new product.This product is expected to increase the firm's revenues by a total of $24 million in the next year.The firm also estimates that the production cost of the new product will be $22 million.What is the expected rate of return on this research and development expenditure?

Accepted Answer

A)  8.3 percent
B)  9.1 percent
C)  10 percent
D)  20 percentE) A) and B)
F) A) and C)

Question 4

Which of the following is a "spin-off" firm?

Accepted Answer

A)  Amazon
B)  Yum! Brands
C)  McDonald's
D)  PepsiE) C) and D)
F) None of the above

Question 5

The following are examples of innovative products in their respective industries, except

Accepted Answer

A)  Nokia's smartphones.
B)  Johnson & Johnson's disposable contact lenses.
C)  Hewlett-Packard's scientific calculator.
D)  Apple's iPhone.E) C) and D)
F) A) and C)

Question 6

Process innovation can be depicted as

Accepted Answer

A)  an upward shift in a firm's total product curve.
B)  an upward shift in a firm's marginal cost curve.
C)  a downward shift in a firm's marginal revenue curve.
D)  an increase in product demand.E) None of the above
F) A) and D)

Question 7

Which would be a good example of a successful introduction of a new product?

Accepted Answer

A)  McDonald's McLean burger
B)  Microsoft Windows
C)  Kodak disc cameras
D)  New Coke by Coca-ColaE) C) and D)
F) B) and C)

Question 8

As it relates to the R&D decision, the interest-rate cost-of-funds curve

Accepted Answer

A)  usually slopes downward.
B)  is the marginal cost element in the MB = MC decision framework.
C)  indicates a constant rate of return, r.
D)  reflects the interest rate on bank loans but not the implicit interest rate on the use of retained earnings.E) None of the above
F) B) and D)

Exam 15: Technology, Rd, and Efficiency

The following are examples of innovative products in their respective industries, except

Correct Answer
verified

Correct Answer
verified

Which of the following is a "spin-off" firm?

Correct Answer
verified

Process innovation can be depicted as

Correct Answer
verified

Which would be a good example of a successful introduction of a new product?

Correct Answer
verified

An amount of R&D spending that is less than the optimal amount indicates that the

Correct Answer
verified

R&D spending decisions by firms are complicated because they involve having to compare present expenditures against future expected gains.

Correct Answer
verified

As it relates to the R&D decision, the interest-rate cost-of-funds curve

Correct Answer
verified

Exam 15: Technology, Rd, and Efficiency

The following are examples of innovative products in their respective industries, except

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a "spin-off" firm?

Correct AnswerverifiedShow Answer

Process innovation can be depicted as

Correct AnswerverifiedShow Answer

Which would be a good example of a successful introduction of a new product?

Correct AnswerverifiedShow Answer

An amount of R&D spending that is less than the optimal amount indicates that the

Correct AnswerverifiedShow Answer

R&D spending decisions by firms are complicated because they involve having to compare present expenditures against future expected gains.

Correct AnswerverifiedShow Answer

As it relates to the R&D decision, the interest-rate cost-of-funds curve

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified