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HMRC internal manual

VAT Refunds

Unjust enrichment: Some items to consider: Market position

When considering market conditions we must be careful to compare like with like. For example, it is no good comparing the market conditions relating to luxury cars with that for economy cars. 

It may also give a false reading if you compare upmarket retail establishments with the common-or-garden ones - upmarket retail outlets may have different costs simply because of the standard of service.

In the case of monopolies, the supplier can set whatever price he wants for his goods or services simply because there is no competition. However, the products still have to be reasonably priced if they are to sell so some or all of the VAT may be absorbed if the cost of the goods or services becomes too high for demand.