
Subpart (a):
Comparing low profit and high profit industry.
Subpart (a):

Explanation of Solution
If low profit industry (L) and high profit industry (H) has similar cost, the
Concept introduction:
Profit: Profit refers to the excess revenue after subtracting the total cost from the total revenue
Subpart (b):
Comparing low profit and high profit industry.
Subpart (b):

Explanation of Solution
Comparing the value of output in both industries, it is higher in industry H than L.
Subpart (c):
Comparing low profit and high profit industry.
Subpart (c):

Explanation of Solution
If the labor and capital are moved from L industry to H, it will give up the low valued goods and gained high valued goods.
Subpart (d):
Comparing low profit and high profit industry.
Subpart (d):

Explanation of Solution
The cost of production in is different in both industries. High profit industry has low cost and low profit industry has high cost, because generally high profit industries are technologically advanced, thus they need less cost to produce goods. This is exactly differing in low profit industries, they are already running in low profit and it is difficult for them to adopt new low cost technological production methods.
Subpart (e):
Comparing low profit and high profit industry.
Subpart (e):

Explanation of Solution
If the cost of production is low in industry H, they require lower amount of capital and labor than industry L.
Subpart (f):
Comparing low profit and high profit industry.
Subpart (f):

Explanation of Solution
If the capital and labor are shift from low profit industry L to high profit industry H, there is small unit of output are given up in L than are gained in industry H.
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