A firm is considering its R&D spending for the next year. The table below shows the cost of borrowing for the firm (the interest rate), the firm's demand for financial capital if it can capture only the private benefits of investment, and the social demand for financial capital at each interest rate. The firm can borrow funds at an interest rate of 10%.If the government passes intellectual property laws that allow the company to receive both the social and private benefits of its R&D investment, at the above interest rate, it will demand financial capital in the amount of $234.True False

1 Points A firm is considering its R&D spending for the next year. The table below shows the cost of borrowing for the firm (the interest rate), the firm's demand for financial capital if it can capture only the private benefits of investment, and the social demand for financial capital at each interest rate. The firm can borrow funds at an interest rate of 10%. If the government passes intellectual property laws that allow the company to receive both the social and private benefits of its R&D investment, at the above interest rate, it will demand financial capital in the amount of $234. Cost of Borrowing Private Demand Social Demand 195 254 10% 234 304 12% 281 365 14%1 3374 438 True False Reset Selection