Firm a produces gadgets. the price of gadgets is $2 each. firm a has total fixed costs of $1,000,000 and variable costs of $1 per gadget. the corporate tax rate is 40%. if the economy is strong, the firm will sell 2,000,000 gadgets. if the economy enters a recession, the firm will sell only half as many gadgets. if the economy enters a recession, the after-tax profit of firm a will be

$ 0

Explanation:

number of gadgets produced in strong economy= 2,000,000

price each gadget= $2

number of gadgets produced in recession= 1,000,000

variable cost is $1 per gadget

fixed cost= $1,000,000

now profit before tax can be calculated as

= 1,000,000*(2-1)-1,000,000

=$0

now since the profit of company is zero the company does nit pay any tax

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

answer; no individual buyer or seller has any significant impact on the market price;