Because they can’t utilize economies of scale or amortize their fixed costs across as large a production run as the large established companies can. Unless the established companies are priced very far above their minimum marginal cost, the small company would be running at a significant loss to undercut them.
Because they can’t utilize economies of scale or amortize their fixed costs across as large a production run as the large established companies can. Unless the established companies are priced very far above their minimum marginal cost, the small company would be running at a significant loss to undercut them.