Assume That the Production Technology Required to Produce Goods X

Multiple Choice

Assume that the production technology required to produce goods X and Y is very similar. If a firm that is producing good X notices that the market price of good Y is rising, it will:

A) intensify its production of good X.
B) shift into producing good Y.
C) anticipate a price increase for good X.
D) charge a higher price for good X.