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Equation

The derivative of the total quantity sold by retailers (Q subscript R) with respect to the retail price (P subscript R) times "open parenthesis" the retail price (P subscript R) less the marginal cost of selling an additional unit of a product to consumers (MC subscripts R) "closed parenthesis" is equal to the derivative of the quantity of product sold by the manufacturer (Q subscript M) with respect to the wholesale price charged by the manufacturer (P subscript W) times times "open parenthesis" the wholesale price charged by the manufacturer (P subscript W) less the marginal cost of production (MC subscript M) "closed parenthesis"

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Updated June 25, 2015