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Equation

"Open parenthesis" the retail price, (P subscript R) less the marginal cost of selling an additional unit of a product to consumers, (MC subscript R), "closed parenthesis" divided by the retail price, (P subscript R) is equal to the negative inverse of the price elasticity of demand for the retailer (eta subscript (q subscript R), (P subscript R)).

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Updated June 25, 2015