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5. Natch.com is an internet dating site that helps people meet partners by showing them profiles of potential matches. When a person signs up, she

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5. Natch.com is an internet dating site that helps people meet partners by showing them profiles of potential matches. When a person signs up, she or he fills out a profile, then pays money to view profiles of others. The company has hundreds of profiles in the computer system and it costs nothing to email profiles to customers (so MC = 0). Suppose that there are two types of customers: desperate customers have an inverse demand for profiles given by pa = 40 - 2qa and not-desperate customers have inverse demand pn = 20 - 2qn. The company has exactly one of each type of customer. If the profile that the customers fill out has enough information in it to allow Natch.com to perfectly price-discriminate, what will the company's profits be? (a) 0 (b) 100 400 (d) 500

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