The "inverted-U theory" of R&D shows the relationship between

A) marginal benefit and marginal cost of R&D.
B) number of R&D projects and the sources of R&D funds.
C) R&D expenditures and expected return.
D) market concentration ratio and R&D expenditures.

Inverted-U Theory

A concept suggesting that there is an optimum level of a variable, beyond which its effect begins to decline or become negative, often applied to the relationship between income inequality and economic development.

Market Concentration Ratio

A measure used to determine the level of competition within a market by analyzing the market share of the largest firms within the industry.

R&D Expenditures

Funds invested by companies or governments in research and development to innovate or improve products, services, or processes.