answer. Explain why it is the best answer. We care about the reasoning more than just having the right answer. 1. Low skill industries

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Choose the best answer. Explain why it is the best answer. We care about the reasoning more than just having
the right answer.
1. Low skill industries . . .
A. Reach their largest size in relatively small cities.
B. Are relatively larger (compared to high skill industries) in small cities.
C. A and B.
D. Neither A nor B.

Expert Solution
Step 1

Low skill industries means the industries which produce primary and secondary product . They are not high class industries and mainly they depend on labour for the production of output . The factor of production is mainly labour and cost of production is very low . The labour are paid nominal and subsistence wage rate to fulfil basic necessities of life . They are more in small cities because the investment and cost of production is very low and it is more suitable for small groups of people. 

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