Solved

A News Magazine Offers Students a Discount on the Regular

Question 1

Multiple Choice

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:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents