Question 1
It has been argued that the UK banking system is an oligopoly ( http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8266582/Big-banks-running-an-oligopoly-says-Virgin-Money-chief.html# ) .

a) Using appropriate diagrams and economic research critically discuss the extent to which this is the case
b) What are the likely implications for consumers?

+ http://economicsonline.co.uk/Business_economics/Oligopoly.html The UK banking system is an Oligopoly because there are a small number of companies in the industry to allow barriers to be raised against the entry of new firms. ‘It’s important that we have to make sure there’s no banks too big to fail’ (article). Although in an oligopoly its known …show more content…

The main aim of price discrimination is to higher profits and capital in the business. There are 3 types of price discrimination, First degree price discrimination which is when the maximum price that consumers are willing and can afford to pay is charged for the goods. This type of price discrimination can be found at markets where they will try and haggle with their customers. Second degree price discrimination which is when the price of the goods varies depending on the quantity of goods sold. An example of second degree price discrimination can be general end of season sales, last minute cheap holidays. As the production of these goods will always remain the same however when shops need to get rid of old stock they will sell it cheaper and when the holiday is coming closer and they realise they have a few places left they will make the prices cheaper in order for them to sell.
Third degree price discrimination is when a business uses market segmentation to identify their different target markets factors such as location, gender, age, income etc will affect how much a business prices their goods for. An example of this is cinemas having different priced tickets depending on age of customers, student discount for public transport Ect.
Elderly people have low income rates so without the senior discount they are less likely to be able to afford going to restaurant especially if the prices are high, so that is why businesses