Assume that the total industry sales is Php 100 M. The largest firm has a market share of Php50M/Php100M, the other two firms have a market share of Php25M/Php100M each. What is the Herfindahl Hirschman Index (HHI)? A. 4,400 B. 5,500 C. 6,600 D.7,700 E. no correct answer

Assume that the total industry sales is Php 100 M. The largest firm has a market share of Php50M/Php100M, the other two firms have a market share of Php25M/Php100M each. What is the Herfindahl Hirschman Index (HHI)? A. 4,400 B. 5,500 C. 6,600 D.7,700 E. no correct answer

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 1.6CE

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1. Assume that the total industry sales is Php 100 M. The largest firm has a market share of Php50M/Php100M, the other two firms have a market share of Php25M/Php100M each. What is the Herfindahl Hirschman Index (HHI)? A. 4,400 B. 5,500 C. 6,600 D.7,700 E. no correct answer 2. Assume that the cost of a new investment project is Php 30 M incurred in 2007 with returns of Php 8 M in 2008, Php 12 M in 2009, Php 14 in 2010. Assume that the opportunity cost of money (k) is 10%. Compute the net present value of this project. A. 2.28M B. – 2.28M C. 4.2M D. – 4.2M E. no correct answer

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