The Lerner Index of Monopoly Power is equal to

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    minus 1 divided by the price elasticity of demand (-1/Ed); the larger the number the lower the degree of monopoly power.
     minus 1 divided by the price elasticity of demand (-1/Ed); the larger the number the greater the degree of monopoly power.
     the markup ratio of price minus marginal cost to price, or (P-MC)/P; the larger the number the greater the degree of monopoly power.
     Both 2 and 3.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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Both 2 and 3.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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