Question: Most magazines offer enormous subscription deals for college students. For example, Time magazine offers a one-year subscription for $29.95, when the cover price is $3.95 per issue. This is an 85 percent discount.

a. Why do they do this?

b. How would your answer change if you are told that most subscribers get enormous discounts, and that Time’s subscription revenue does not cover its costs?

c. What is a likely reason why magazines sell their magazines so cheaply?