Question

what is the relationship between startup costs and a competitive market

Answer 1

Start-up costs are the costs a business incurs when starting up a business, and a competitive market is one where there are many buyers and sellers in the market for that same product.

Start-up costs will usually be high in a competitive market, as they need some finance for promoting, advertising, creating a slogan, making the prices cheaper than competitors so that people can afford the prices (which creates largers costs than for a monopoly, let's say) and so on....

Answer 2

Start-up costs are higher in competitive markets. The reason being is due to competition. Emerging companies will usually get crushed by successful companies, unless the start-up company is able to exert enough capital to stay on the same competitive levels of those companies who are already in the markets.