Consider Industries X and Y

question 19

Multiple Choice

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) prices are higher in Industry X.
• B) resources will move from Industry Y to Industry X.
• C) labor and capital will move from Industry X to Industry Y.
• D) firms in both industries will shut down operations.

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Definitions:

Katherine Nelson

An influential cognitive psychologist known for her work on language development and memory in children.

Causal Reasoning

The ability to understand and identify the cause-and-effect relationships between different events or phenomena.

Psychological Events

phenomena related to the mind or mental processes that affect human behavior and experiences.

Physical Events

Occurrences that involve changes or activities in the tangible, physical world.