Figure 1: Average per-minute e-scooter ride rate as a percentage of the original monopoly tariff, by number of active competing operators in a metropolitan zone
| Number of active competing operators | Average per-minute rate as % of original monopoly tariff |
|---|---|
| 1 (Monopoly) | 100% |
| 2 | 82% |
| 3 | 68% |
| 4 | 55% |
| 5 | 44% |
| 6 | 35% |
| 7 | 28% |
| 8 | 24% |
| 9 | 21% |
| 10+ | 17% |
Source: Municipal Transit Regulatory Database, 2023
Note: E-scooter ride rates are charged per minute by independent micro-mobility firms operating under municipal permits within the metropolitan zone.
Explain how the data in Figure 1 show that greater competition leads to lower prices in the market for shared e-scooter rides.
136 exam-style questions on AQA A Level Economics 1.5 Perfect competition, imperfectly competitive markets and monopoly, covering 1.5.1 Market structures, 1.5.2 The objectives of firms, 1.5.3 Perfect competition, 1.5.4 Monopolistic competition (A-level only), 1.5.5 Oligopoly (A-level only), 1.5.6 Monopoly and monopoly power, 1.5.7 Price discrimination (A-level only), 1.5.8 The dynamics of competition and competitive market processes, 1.5.9 Contestable and non-contestable markets (A-level only), 1.5.10 Market structure, static efficiency, dynamic efficiency and resource allocation (A-level only), and 1.5.11 Consumer and producer surplus (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.