alleryStart learning →Which index is used to estimate a firm's market power?
AGini index
BLerner index
CSensex index
DPoverty index
Answer & Solution
Correct answer: B. Lerner index
The Lerner index measures how far price is above marginal cost, which shows market power.
Keep practising Monopoly
Browse all Monopoly questions for CA Foundation, or explore more Business Economics topics.
Related questions
If total revenue exceeds total cost, a monopolist earns:Control of critical raw materials gives a firm monopoly power through:For a pure monopolist, the firm's demand curve is the:Entry limit pricing involves deliberately setting a:Absence of close substitutes makes a monopolist's product demand:Monopoly pricing creates which welfare loss?A monopoly granted by law to one private company is called a:Average cost pricing leaves a regulated monopoly with what economic profit?