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.