Question
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
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).Fixed costs are also 0.Suppose that there are two types of customers:desperate customers have an inverse demand for profiles given bypd=40-2qand not-desperate customers have inverse demand pn=20-3q.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?
The Answer is 466.67 but I got completely by chance. Can you please show me the steps?
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