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Firm A produces gadgets. The price of gadgets is USD two each. Firm A has total fixed costs of USD 1,000,000 and variable costs of USD 1.00 per gadget. The corporate tax rate is 40 percent. If the economy is strong, the firm will sell 2,000,000 gadgets. If the economy enters a recession it will sell only half as many gadgets. If the economy enters a recession, Determine the after-tax profit of Firm.

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