Expected Rate of Return $(\%)$

R&D

$($$M$)$

Interest Rate Cost of Funds $(\%)$

$10$

$20$

$8$

$8$

$40$

$8$

$6$

$60$

$8$

$4$

$80$

$8$

$2$

$100$

$8$

Refer to the data. The firm's optimal amount of R&D spending is

$$60$ million.

$$20$ million.

$$40$ million.

$$80$ million.

hiring workers in a purely competitive market.

hiring workers in an imperfectly competitive market.

selling its product in an imperfectly competitive market.