The derivative of the retail quantity sold (Q subscript R) with respect to shelf-space (S) times "open parenthesis" the retail price (P subscript R) less the marginal cost of selling an additional unit to consumers (MC subscript R) "closed parenthesis" is LESS THAN the derivative of the quantity of product sold by the manufacturer with respect to shelf space (S) times "open parenthesis" the wholesale price (P subscript W) less the marginal cost of production (MC subscript M) "closed parenthesis".

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Updated June 25, 2015

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