Two Firms, a and B, Both Produce Widgets

question 45

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.
• E) None of the options are correct.

Understand the complexities and limitations surrounding a biological definition of race.

Comprehend the physiological and health implications of favism, as related to genetic differences.

Recognize the impact of environmental chemicals on human health, with a focus on hormone disruptors.

Grasp the relationship between vitamin D, skin color, and health.

---

Definitions:

Payments

The act of transferring money or other consideration from one party to another as fulfillment of an obligation or purchase.

Divisible Contract

An agreement comprising multiple promises or parts that can be separated and independently executed or enforced.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Enforceable Contract

A legally binding agreement capable of being upheld and imposed in a court of law.