Question

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

Answer 1

IF THE ECONOMY ENTERS IN RECESSION, TOTAL REVENUES OF FIRM C = 1,400,000 X 1.20 = 1,680,000

ANSWER : $1,680,000 (Thumbs up please)