In the soda industry, production costs per unit continue to fall as the firm expands. in this type of industry, smaller rivals trying to enter the industry:

in this type of industry, smaller rivals trying to enter the industry will have much higher average costs.

As a result, it is almost impossible for a new business to come and compete with the large players that already conquered the market for a long period of time because the end cost of their products that arrive for the customers will be significanty higher than their competitors