okitsfrizz2323
29.07.2019 •
Business
Firm a produces gadgets. the price of gadgets is $2 each. firm a has total fixed costs of $1,000,000 and variable costs of $1 per gadget. the corporate tax rate is 40%. 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 enters a recession, the after-tax profit of firm a will be
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Ответ:
$ 0
Explanation:
number of gadgets produced in strong economy= 2,000,000
price each gadget= $2
number of gadgets produced in recession= 1,000,000
variable cost is $1 per gadget
fixed cost= $1,000,000
now profit before tax can be calculated as
= 1,000,000*(2-1)-1,000,000
=$0
now since the profit of company is zero the company does nit pay any tax
Ответ:
B
Explanation: Trust :)