What could the magazine do in order to maximize profit

Reference no: EM13189488

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.

a. What could the magazine do in order to maximize profit? Explain.

b. How would profit be affected if the magazine sells one more subscription to a regular customer and one less subscription to a student? Explain.

Reference no: EM13189488

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