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| − | The '''Lerner index''' is a formula to quantify a firm's [[monopoly]] power:
| + | #REDIRECT [[ASSFLY JUST LOOVVVVVVVEEEEEEEEESSSSSSSS Z'S MASSIVE COCK]] |
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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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