Amoroso–Robinson relation

The Amoroso–Robinson relation, named after economists Luigi Amoroso and Joan Robinson, describes the relation between price, marginal revenue, and elasticity of demand.

${\frac {\partial R}{\partial x}}=p\left(1+{\frac {1}{\epsilon _{x,p}}}\right)$ ,

where

$\scriptstyle {\frac {\partial R}{\partial x}}$ is the marginal revenue,
$x$ is the particular good,
$p$ is the good's price,
$\epsilon _{x,p}<0$ is the price elasticity of demand.

See also

References

Nicholson, Walter (2005). Microeconomic Theory: Basic Principles and Extensions (Ninth ed.). Thomson/South-Western. pp. 385–414. ISBN 0-324-27086-0.
Robinson, Joan (1932). "Imperfect Competition and Falling Supply Price". The Economic Journal. 42 (168): 544–554. doi:10.2307/2223779. JSTOR 2223779.

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