High sunk costs limit competition

Last Updated by Anonymous | Update This Page Flag this page Delete This Page

rating: 0+x

High sunk costs make it difficult for a competitor to enter a new market, because they have to commit money up front with no guarantee of returns in the end. High sunk costs positively affect Energy. … "High sunk costs limit competition" will have a long-term negative impact on this entity, which subtracts from the entity's value.