Lerner Index is a measure of:
A)Elasticity of demand
B)Monopoly power
C)Inequality

Name: Lerner Index is a measure of: A)Elasticity of demand B)Monopoly power C)Inequality
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Question

Quizplus · Accepted Answer

The Lerner Index is a measure of a firm's monopoly power. It is calculated as the difference between price and marginal cost, divided by price. This index indicates the degree to which a firm can set prices above marginal costs, thus reflecting its degree of market power.

Lerner Index Is a Measure Of