The correct answer is: A. railway company
Price discrimination is a pricing strategy in which a company charges different prices for the same product or service to different groups of customers. This can be done based on factors such as customer location, customer income, or customer willingness to pay.
Price discrimination can be a very effective way to increase a company’s profits. However, it is not always possible to implement price discrimination. In some cases, it may be difficult to identify different groups of customers who are willing to pay different prices. In other cases, it may be difficult to prevent customers from switching between groups in order to take advantage of the lower prices.
In the case of a railway company, it is difficult to implement price discrimination because it is difficult to identify different groups of customers who are willing to pay different prices. For example, it is difficult to know whether a customer who is willing to pay a higher price for a train ticket is doing so because they are willing to pay more for the convenience of train travel, or because they are willing to pay more for the environmental benefits of train travel.
As a result, railway companies typically do not implement price discrimination. Instead, they typically charge a single price for all train tickets. This means that some customers may be paying more than they are willing to pay, while other customers may be paying less than they are willing to pay.
In contrast, it is easier for companies such as mobile companies to implement price discrimination. This is because mobile companies can easily identify different groups of customers who are willing to pay different prices. For example, mobile companies can offer different prices to customers who sign up for a two-year contract, compared to customers who sign up for a month-to-month contract. Mobile companies can also offer different prices to customers who are willing to commit to a certain level of usage, compared to customers who are not willing to commit to a certain level of usage.
As a result, mobile companies are able to implement price discrimination more easily than railway companies. This allows mobile companies to increase their profits by charging different prices to different groups of customers.