Some economists argue that private firms will not undertake the efficient amount of basic scientific research. a. Explain why this might be so. In your answer, classify basic research in one of the categories shown in Figure 1. b. What sort of policy has the United States adopted in response to this problem? C It is often argued that this policy increases the technological capability of American producers relative to that of foreign firms, is this argument consistent with your classification of basic research in part (a)? ( Hint : Can excludability apply to some potential beneficiaries of a public good and not others?)

BuyFind

Principles of Microeconomics

7th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305156050
BuyFind

Principles of Microeconomics

7th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305156050

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Chapter
Section
Chapter 11, Problem 6PA
Textbook Problem

Some economists argue that private firms will not undertake the efficient amount of basic scientific research.

a. Explain why this might be so. In your answer, classify basic research in one of the categories shown in Figure 1.

b. What sort of policy has the United States adopted in response to this problem?

  C It is often argued that this policy increases the technological capability of American producers relative to that of foreign firms, is this argument consistent with your classification of basic research in part (a)? (Hint: Can excludability apply to some potential beneficiaries of a public good and not others?)

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