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Holding all else constant, higher prices will Multiple Choice decrease the Lerner index. have no impact on the Lerner index. increase or decrease the Lerner index depending on the relative magnitude of the price increase. increase the Lerner index.

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Parrain

Based on the way the Lerner index is calculated, higher prices would increase the Lerner index.

What is the Lerner Index?

It is a measure that allows for the calculation of marker power in a certain industry.

It is calculated by the formula:

= (Price - Marginal cost) / Price

If the price increases, the numerator will increase which means that the Lerner index increases.

In conclusion, option D is correct.

Find out more on indexes at https://brainly.com/question/824647.

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