Both produce widgets

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Two firms, X and Y, both produce widgets. The price of widgets is $1 each. Firm X has total fixed costs of $500,000 and variable costs of .50 per widget. Firm Y has total fixed costs of $220,000 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 is strong, the after tax profit of Firm Y will be

Reference no: EM131027045

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