The Herfindahl-Hirschman Index Equals ________ When ________ Have (Has) of the Market

question 68

Multiple Choice

The Herfindahl-Hirschman index equals ________ when ________ have (has) of the market.

• A)10,000; four firms each; 25%
• B)5,000; three firms each; 50%
• C)5,000; two firms each; 50%
• D)100,000; one firm; 100%

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Definitions:

Operating Expenses

Recurring expenses incurred through normal business operations, such as rent, utilities, and payroll, excluding COGS.

Cash Payments

Transactions that involve the direct transfer of money to settle obligations, including expenses, debts, or purchases, without the use of credit.

Accounts Receivable

Money owed to a company by customers for products or services that have been delivered or used but not yet paid for.

Income Tax Payable

This represents the amount of income tax that a company owes to the government but has not yet paid.