Can you point out to any practical examples where this has happened? The article in question demonstrates the market working well, I would say. Your hypothetica

Can you point out to any practical examples where this has happened? The article in question demonstrates the market working well, I would say. Your hypothetical scenario goes against what we observed happen. I think it's reasonable to ask for an example or two in this case. Personally, I don't think your scenario will play out in real life. Competitors will appear when it is profitable for them to appear. Sure, there's a start-up cost (as with most forms of business), and this cost must be included when calculating profitability. But that doesn't change the fact that they will appear when it's profitable, it only increases the profit margin required for a profitable investment. Bottom line: a competitor will not appear until it can produce a commodity more cheaply than the market. And this is exactly what we want.