Two Firms, C and D, Both Produce Coat Hangers

question 55

Multiple Choice

Two firms, C and D, both produce coat hangers.The price of coat hangers is $1.20 each.Firm C has total fixed costs of $750,000 and variable costs of 30' per coat hanger.Firm D has total fixed costs of $400,000 and variable costs of 50' per coat hanger.The corporate tax rate is 40%.If the economy is strong, each firm will sell 2,000,000 coat hangers.If the economy enters a recession, each firm will sell 1,400,000 coat hangers. If the economy enters a recession, the total revenue of firm C will be

• A)$1,680,000.
• B)$1,400,000.
• C)$2,000,000.
• D)$0.

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Definitions:

Cultural Formulation

An approach in psychiatry and psychology that considers the impact of cultural factors on an individual's health and behavior, aiding in diagnosis and treatment.

Reality Engineering

The practice of deliberately shaping the perception of reality through various means, often involving media, technology, or psychological techniques.

Craft Product

An item that is made traditionally by hand, or with minimal mechanization, often emphasizing quality and uniqueness.

Art Product

A creation resulting from artistic activities, such as paintings, sculptures, or design pieces, intended for aesthetic appreciation or cultural significance.