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Business, 24.04.2020 19:36 KarateKat

Firm B produces gadgets. The price of gadgets is $2 each. Firm B has total fixed costs of $300,000 and variable costs of $1.40 per gadget. The corporate tax rate is 30%. If the economy is strong, the firm will sell 2,000,000 gadgets. If the economy enters a recession, the firm will sell only half as many gadgets. If the economy is strong, the after-tax profit of firm B will be .
a. $90,000b. $210,000c. $300,000d. $630,000

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Firm B produces gadgets. The price of gadgets is $2 each. Firm B has total fixed costs of $300,000 a...
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