Discount on the regular subscription rate

Reference no: EM13685276

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

Question options:

1. Offer students a lower discount (raise the price to students).

2. Offer students a higher discount (lower the price to students).

3. Offer all customers the same discount received by the students.

4. Stop offering students a discount on the regular subscription rate.

Reference no: EM13685276

Questions Cloud

Process of analyzing business problems : Process of analyzing these business problems, you should put yourself in the role of the decision maker and try to solve whatever problem exists in the best possible manner.

In monopolistic competition as well as in monopoly : In monopolistic competition as well as in monopoly,

What is the average product of labor : What is the average product of labor, given that the level of labor equals 10, total output equals 1200 and the marginal product of labor equals 200?

What are benefits of using rules to conduct monetary policy : If the Fed lowers the federal funds rate using an open market sale, what will be the effect on other interest rates? The exchange rate? Money and bank loans? Long-term real interest rate? Expenditure plans? Aggregate demand? What are the benefits of ..

Discount on the regular subscription rate : 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..

In a monopolistically competitive market : In a monopolistically competitive market

Discuss what kinds of skills will be required in employees : Discuss what kinds of skills will be required in employees (may be under-supplied too) in the future of the digital economy that you envisage - Analysis of digital/social media based transformation of a company.

Is implicit cost inherently estimate or can it be quantified : Is implicit cost inherently an estimate or can it be quantified? And who is the primary person responsible for these estimated quantifications?

Calculate the minimum flow rate : A solution is pumped through a 5cm diameter stainless steel pump.

User Account

All Pages