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Consider industries X and Y. Industry X has total revenue of $100 million and total costs of $77 million. Industry Y has total revenue of $80 million and total costs of $40 million. We should expect that:
A. resources will move from Industry Y to Industry X.
B. prices are higher in Industry X.
C. labor and capital will move from Industry X to Industry Y.
D. firms in both industries will shut down operations.

Respuesta :

Answer:

C

Explanation:

Profit = total revenue - total cost

Industry X : profit =  $100 million - $77 million = $23 million

Industry Y : profit = $80 million - 40 million = $40 million.

Industry Y is more profitable than industry X, thus, there would be a move of resources from Industry X to Industry Y.

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