Consider Industries X and Y

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.