A news magazine offers students a discount on the regular subscription rate. The
ID: 1119833 • Letter: A
Question
A news magazine offers students a discount on the regular subscription rate. The total number of subscriptions is optimal, and, at the current prices, the marginal revenue from the last subscription sold to a student is $6, while the marginal revenue from the last subscription sold to a regular customer is $10. In order to maximize profit, the magazine should Select one: O a. offer students a lower discount (raise the price to students). b. stop offering students a discount on the regular subscription rate Oc. offer all customers the same discount received by the students () d. offer students a higher discount (lower the price to students).Explanation / Answer
offer students a lower discount (raise the price to students)
the above is the answer
as it would result in more marginal revenues and raise profits.