4. Some economists argue that private firms will not undertake the efficient amount of basic scientificresearch. a. Explain why this might be so. In your answer, classify basic research in one of the

4. Some economists argue that private firms will not undertake the efficient amount of basic scientificresearch. a. Explain why this might be so. In your answer, classify basic research in one of the

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Some economists argue that private firms will not undertake the efficient amount of basic scientificresearch. Explain why this might be so.

4. Some economists argue that private firms will not undertake the efficient amount of basic scientificresearch. a. Explain why this might be so. In your answer, classify basic research in one of the categories(Private Good, Common Resource, Artificially Scarce/Natural Monopoly Good, or Public Good).b. What sort of policy has the United States adopted in response to this problem? (This might take avery small amount of research. Answer the question in one or two sentences.)c. It is often argues that this policy increases the technological capability of American producersrelative to that of foreign firms. Is this argument consistent with your classification of basic research inpart (a)? (Hint: Can excludability apply to some potential beneficiaries of a public good and notothers?)

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