(1) Two firm A, and B both produce widger. The price of widgets is $1 each. Firm A has total fixed costs of $500,000 and variabe costs of 50c per widget. Firm B has total fixed cost of $240,000 ane variable cost of 75q per wiaget. The corporatetax rate is 40% if the economy is strong, each firm will sed 1209000 coingers. If the economy enters a recession, each finm will see 1100,000 widgets. if the economy enters a recession, the aftertax profit of firm A will be 1) 30,000 2) 60,000 3) 0 4) 6000