Truth maybe you should change your question. Dont ask if they can compete with KBLB when the obvious answer is they dont know KBLBs cost. We know KBLB wont have any cost in production that would be higher than mundane silk. So ask them if they will be able to compete with the $60K a ton that high quality silk costs.
I personally do not see how KBLBs silk could cost any more than that.
And to head off any typical comments about the costs. I would say that to imply that MS would cost more you will need to come up with a process required for MS that is not used to produce normal silk.