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LERNER INDEX: The difference between price (p) and marginal cost (mc) as a fraction of price, that is [p-mc]/p. The Lerner index is usually taken as an indicator of market power because the larger the index, the larger the difference between price and marginal cost, that is, the larger the distance between the price and the competitive price. The Lerner index depends on the elasticity of demand. The Lerner index is also called the price-cost margin.
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ELASTIC The general relation between two variables in which relatively small changes in one variable (A) cause relatively large changes in another variable (B). Small changes in variable A cause relatively large changes in variable B or the percentage change in variable B is larger than the percentage change in variable A. This characterization of elasticity is most important for the price elasticity of demand and the price elasticity of supply. Elastic is one of two general elasticity relations between two variables. The other is inelastic.
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BLACK DISMALAPOD
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Today, you are likely to spend a great deal of time at an auction hoping to buy either throw pillows for your living room sofa or a hepa filter for your furnace. Be on the lookout for pencil sharpeners with an attitude.
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On a typical day, the United States Mint produces over $1 million worth of dimes.
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"The road to success is always under construction. " -- Lily Tomlin, Actress
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