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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.
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