Difference between revisions of "Lerner index"

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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]]
-:Lerner index = (P-MC)/P
-where P is the price and MC is the marginal cost.
-The index ranges from 0 (no monopoly power) to 1 (complete monopoly power when MC=0).
-This index has been criticized for relying on MC, which is not usually known, and for being static rather than dynamic.
-[[Category:Economics]]