A news magazine offers students a discount on the regular subscription rate. The

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

Question options:

stop offering students a discount on the regular subscription rate.

offer students a higher discount (lower the price to students).

offer students a lower discount (raise the price to students).

offer all customers the same discount received by the students.

stop offering students a discount on the regular subscription rate.

offer students a higher discount (lower the price to students).

offer students a lower discount (raise the price to students).

offer all customers the same discount received by the students.

Explanation / Answer

offer students a higher discount (lower the price to students).

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