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Refer to the Following

Question 22

Multiple Choice

Refer to the following:
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.

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