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3.4.3 Monopolistic competition

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Question 2

Extract A

The high street rise of independent mobile repair kiosks (MRKs)

The UK's independent mobile repair kiosks (MRKs) have seen rapid growth, offering highly price-competitive tech repair services. However, this expansion has raised regulatory concerns regarding electronic waste disposal and labor standards.

Estimates suggest between 6,000 and 12,000 independent repair kiosks operate across the country, often run as sole traders or small partnerships. This lack of centralized registration makes tracing tax compliance and tracking electronic waste disposal pathways extremely difficult. Historically, mobile device repairs were exclusive services restricted to licensed manufacturer service centres or high-end department stores. Today, they are accessible in almost every local shopping arcade or high street. As department stores closed and retail rents fell, landlords divided large spaces into micro-booths. Entrepreneurs jumped on these cheap, small spaces to set up repair stations requiring very little initial capital.

Setup costs are low—requiring only precision screwdrivers, heat guns, adhesive strips, and a small inventory of generic replacement screens and batteries. The labor market has also supplied a steady stream of young technicians, many of whom are self-taught or work informally.

In many urban centres, kiosks compete intensely on price, with basic battery replacements priced as low as £20. Simple calculations show the intense financial constraints: if a technician takes 30 minutes per repair, they can service a maximum of 16 devices in an 8-hour shift, generating £320 in revenue. Once the wholesale cost of replacement parts (typically £8 per battery), micro-rent, and electricity are deducted, earning a sustainable return is highly dependent on achieving near-continuous footfall.

Furthermore, investigations into the sector highlight safety concerns in lower-end setups. Technicians frequently handle punctured lithium-ion batteries and inhale toxic adhesives or fine glass shards without adequate dust-extraction systems or protective eyewear.


Using the information provided in Extract A, explain the market structure that best describes the independent mobile repair kiosk (MRK) industry in the UK.

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3.4.3 Monopolistic competition Questions

  1. A Level
  2. /Economics
  3. /3.4.3 Monopolistic competition