Price Mark-Up, Elasticity, and the Lerner Index

[@lorislepage1436]

Thank you it helped me a lot !

[@MattBirch]

Good luck!

[@fnzz6981]

Dear Matt, if I understand well we can see the equation (P-MC)/P as the markup (% of how much the producer is increasing the price) but also as the Lerner Index (unit that measure market power), am I right? Thanks for your helpful video.

[@MattBirch]

Yes. The Lerner index is a way we measure markup.