Two Firms, a and B, Both Produce Widgets

question 28

Multiple Choice

Two firms, A and B, both produce widgets.The price of widgets is $1 each.Firm A has total fixed costs of $500,000 and variable costs of 50' per widget.Firm B has total fixed costs of $240,000 and variable costs of 75' per widget.The corporate tax rate is 40%.If the economy is strong, each firm will sell 1,200,000 widgets.If the economy enters a recession, each firm will sell 1,100,000 widgets. If the economy enters a recession, the after-tax profit of Firm A will be

• A)$0.
• B)$6,000.
• C)$30,000.
• D)$60,000.

Differentiating between various approaches to quality management.

Understanding the impact of globalization and technology on management.

Identifying ethical considerations and leadership qualities important in management.

Understand the risks associated with global interconnectedness and the role of companies in managing those risks.