061818 martinez79hawkmailhccfledu This i s a Mixed question

06/18/18 martinez79@hawkmail.hccfl.edu This i s a Mixed question / It is worth 1 point/You have 2 of 2 attempts remaining/There is no attempt penalty 08 Question (1 point) a See page 351 Forbes and many other publications offer discounts to college students who sign up for subscriptions. At the current prices, the marginal revenue from the last subscription sold to college students is $18, and the marginal revenue from the last subscription sold to regular customers is $30 1st attempt Part 1 (0.7 point) See Hint The company sells its magazine to college students for only $18, because students\' demand is than the other groups\' demand. If the marginal cost of a subscription is $8, Forbes can increase its profits by 08/14 art Smartworks-G SUBMIT ANSWER 0Accountng/128RA...02 Laura Martinez-o... 6:48 PM I

Solution

Solution:-

(1). more price elastic

Students demand is more price elastic, it means change in demand is more than the change in price. Hence a decrease in price will increase the demand for magazine from college students.

(2). Adding an additional price (discount offer) for college school students.

The marginal cost of a subscription is $8, which is less than the $18.Hence adding a discount offer to college students will increase its profits.

(3). Option D

It makes it difficult for customers to resell the product.

Since it monitors each issue price discrimination can be practiced.