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315 bytes added , 14:35, June 22, 2010

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~~#REDIRECT~~ [[~~ASSFLY JUST LOOVVVVVVVEEEEEEEEESSSSSSSS Z'S MASSIVE COCK~~]]

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The '''Lerner index''' is a formula to quantify a firm's [[monopoly]] power:

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:Lerner index = (P-MC)/P

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where P is the price and MC is the marginal cost.

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The index ranges from 0 (no monopoly power) to 1 (complete monopoly power when MC=0).

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This index has been criticized for relying on MC, which is not usually known, and for being static rather than dynamic.

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[[Category:Economics]]

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Revision as of 14:35, June 22, 2010

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