TSD Inc. sells 500,000 bottles of its soft drinks per year. Each bottle has a variable cost of $0.25 and sells for $0.45. Fixed operating costs are $50,000. The firm also has current interest changes of $6,000 and preferred dividends of $2,400.

 Corporate taxes are at 25%. 

 Calculate the degree of operating leverage, financial leverage and total leverage. 

Calculate the Herfindahl index for a duopoly market where each firm has equal market share.

ii. Calculate the Herfindahl index for a three-firm oligopoly market in which one firm has a 80% market share and the other firms each have 10% market share.

iii. Calculate the Herfindahl index for a 10-firm oligopoly in which each firm has equalmarket shares.

iv. Which of the markets is the least competitive?