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
A) stop offering students a discount on the regular subscription rate.
B) offer students a higher discount (lower the price to students) .
C) offer students a lower discount (raise the price to students) .
D) offer all customers the same discount received by the students.
Correct Answer:
Verified
Q2: To successfully practice price discrimination
A)the firm must
Q3: A firm faces the demand for
Q4: A firm sells its product to two
Q5: A firm faces the demand for
Q6: A firm sells its product to two
Q7: A firm faces the demand for
Q8: A firm sells its product to two
Q9: A firm sells its product to two
Q10: A firm sells its product to two
Q11: A firm sells its product to two
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents