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 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.

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