Anonymous asked in Social ScienceEconomics · 1 month ago

What does it mean if a firm's Lerner's Index is equal to 0.4?

1 Answer

  • Oiy
    Lv 6
    1 month ago
    Favorite Answer

    The index  is from zero to infinite. So 0.4 means that the market or monopoly power is still small. The price is higher than the marginal cost, but not much.

Still have questions? Get your answers by asking now.