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. If the magazine sells one more subscription to a regular customer and one less subscription to a student: Select one: a. profit will increase $4. b. profit will increase $16. c. profit will decrease $10. d. profit will decrease $6.

Explanation / Answer

the answer is b. profit will increase $16

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