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:

Question

Quizplus · Accepted Answer

Selling one more subscription to a regular customer increases revenue by $10, while selling one less to a student decreases revenue by $6. The net increase in profit is $4.

A News Magazine Offers Students a Discount on the Regular