Question 2 You are in charge of a pharmaceutical company and are struggling to decide how much you should spend in Research and Development. This type of investment is expensive, but it usually brings with it an increase in the number of patents filed, which can determine the future of the company. Your research team has looked at other companies in your industry, and has created the following scatter plot for you: Companies in the Pharmaceutical Industry Number of Patents filed 2 Research and Development Expenditure What type of function do you think best captures the relation between R& D expenditure and number of patents filed? Is there any evidence of economies of scale? Is there any evidence of diseconomies of scale