Yes, it's called patronymics.
The thing with this record is that Merret actually IS Merret Pedersen in her own baptism record, so that should be her LNAB.
I see that there is a Mette Cathrine Nielsen at the bottom of the page, so this parish seems to have made the transition to unisex -sen names for children. (You could look for more girls on the surrounding pages).
Merret's mother is, however, still Kirsten Lauritzdatter.
Sorry, But I cannot read the name of Merret's father very well.