45. Other things equal, patents:?

A. decrease the expected rate of return on a R&D expenditure.
B. increase the expected rate of return on a R&D expenditure.
C. increase the interest-rate cost of funds used to finance a R&D expenditure.
D. decrease the interest-rate cost of funds used to finance a R&D expenditure.
33. Assume that a firm's interest-rate-cost of funds curve for R&D is perfectly elastic. Which of the following would decrease a firm's
optimal R&D expenditures and, in equilibrium, leave the expected rate of return on the last dollar of R&D unchanged?
A. a rightward shift of the expected-rate-of-return curve
B. an upward shift of the interest-rate-cost of funds curve
C. a leftward shift of the expected-rate-of-return curve
D. a downward shift of the interest-rate-cost of funds curve
39. Entrepreneurs:
A. include everyone engaged in R&D work.
B. are located in small enterprises only.
C. try to anticipate the future.
D. work exclusively in government and university R&D laboratories.

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