After Tax Profit
Two firms, A and B, both produce gadgets. the price of gadgets is $2 each. Firm A has total fixed costs of $1000,000 and variable costs of $1.00 per gadget. 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, each firm will sell 2,000,000 ga