The Lerner index, formalized in 1934 by British economist of Russian origin Abba Lerner, is a measure of a firm's market power. == Definition == The Lerner index is defined by: L = P − M C P {\displaystyle L={\frac {P-MC}{P}}} where P is the market price set by the firm and MC is the firm's marginal cost.
The Lerner index, formalized in 1934 by British economist of Russian origin Abba Lerner, is a measure of a firm's market power. == Definition == The Lerner index is defined by: L = P − M C P {\displaystyle L={\frac {P-MC}{P}}} where P is the market price set by the firm and MC is the firm's marginal cost.
Source: Wikipedia "Lerner index" · CC BY-SA 4.0
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