Economies Of Scale
Economies of scale mean each unit costs less as a business makes or sells more. Rent and machines get spread over more sales, and a bigger order can unlock a lower price from the supplier. That is why a national store can sell a notebook for less than a campus shop. If you are starting something, you will not have that advantage on day one, so your price has to cover a higher cost per item until the volume shows up. This can also act as a barrier to entry, because large firms can keep prices lower than new competitors.
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