Figure 1: Average independent smartphone repair price as a percentage of original manufacturer (OEM) repair price, by number of local independent repair shops
| Number of local independent repair shops | Average third-party repair price as % of OEM price |
|---|---|
| 1 | 85% |
| 2 | 72% |
| 3 | 60% |
| 4 | 48% |
| 5 | 38% |
| 6 | 30% |
| 7 | 25% |
| 8 | 22% |
| 9 | 20% |
| 10+ | 18% |
Source: Local Consumer Markets Survey, 2022
Note: Third-party screen repairs are carried out by independent tech repairers who compete with the manufacturer's official authorized repair centers.
Explain how the data in Extract B (Figure 1) show that greater competition leads to lower prices in the market for independent smartphone repairs.
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.