ST10.1 Market Supply. In some markets, cut-throat competition can exist even when the market is dominated by a small handful of competitors. This usually happens when fixed costs are high, products are standardized, price information is readily available, and excess capacity is present. Airline passenger service in large city-pair markets, and electronic components manufacturing are good examples of industries where price competition among the few can be vigorous. Consider three competitors producing a standardized product (Q) with the following marginal cost characteristics?