A regional high-speed rail operator wants to implement third-degree price discrimination by charging different ticket prices to business commuters and leisure travellers for the exact same journey.
Which of the following conditions would make it impossible for the operator to increase its total profits through this pricing strategy?
The marginal cost of operating the train is constant and identical regardless of the number of passengers on board.
The price elasticity of demand for travel is identical for both business commuters and leisure travellers at any given fare.
The operator successfully prevents leisure travellers from using their discounted tickets during peak commuter hours.
The administrative costs associated with setting up separate digital booking portals for the two traveller groups are negligible.
