Posted by leanna on .
Why is much more profitable for a company to bring to market a new product than secon?
While your statement is generally true, it is not always true.
The producer of a new product MAY enjoy some monopoly power for a time. Makers of an existing product are, by definition, in competition with someone else.
Now then your statement is not always true. What if the firm discovers a low-cost way of producing an existing product. The potential for profit could be quite large.