Firm B produce 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 it will sell only half as many gadgets.If the economy is strong,the after-tax profit of Firm B will be _________.
A) $90,000
B) $210,000
C) $300,000
D) $630,000

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The Answer of Firm B produce 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 it will sell only half as many gadgets.If the economy is strong,the after-tax profit of Firm B will be _________.
A) $90,000
B) $210,000
C) $300,000
D) $630,000

Firm B Produce Gadgets