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In an industry with very high fixed costs and almost no marginal costs, more competitors = higher prices.
by rhino369 12y ago
In an industry with very high fixed costs and almost no marginal costs, more competitors = higher prices.
- yborg 12y agoMaybe, but we're talking about Internet service here. Most of these competitors have fully amortized plant already in the ground. The major fixed costs most of them have is their own bureaucracy. Not a week goes by that I don't get a direct mail piece from Comcast suggesting I sign up for Xfinity broadband ... which I already have.