The income elasticity of demand is equal to the percentage change in income divided by the percentage change in quantity demanded

In the Cournot model, if the products are differentiated,

A) this reduces the pressure of one firm's decisions on the other. B) this increases the pressure of one firm's decisions on the other. C) there is no difference between this model and one with homogeneous goods. D) marginal costs are necessarily different.

A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . Ceteris peribus, if the firm continues its production in the same economic environment, the firms accounting profits should

a. increase b. decrease c. stay the same d. does not affect profits