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When a company begins selling a product, the price starts off higher to recoup the cost of development, advertising, equipment, land, etc. Some costs don't increase proportionately to the number of units sold, so the cost of making each unit goes down as more are made. Thus a new company entering the market will have to charge higher prices. Does this mean that the existing companies will be able to get away with charging high prices forever because the barrier to entry is even higher?
Let's say that a company needs to charge a total of $100M more than their final prices to recoup initial costs. But by using investor funds to pay said costs, the new company can collect this $100M over, say 10 or more years, instead of 2 or 5, making the additional cost of each unit from the final price very small. Thus they can beat the overcharging company. Big investors are surprisingly ready buy billions worth of stock of companies that have been losing billions every year, if they believe it's a necessary sacrifice that will more than make up for it in the future.