All of the following may be exit barriers except
A) Employee health benefit costs
B) Treatment,storage and disposal costs
C) Penalties for terminating contracts with raw material suppliers
D) Increasing opportunity cost of production

Question

Quizplus · Accepted Answer

Increasing opportunity cost of production is not an exit barrier because it is a result of an external factor such as market conditions and competition rather than internal costs or obligations that a company would face when exiting a market. A higher opportunity cost may actually incentivize a company to exit the market rather than hinder their decision. A, B, and C are all potential exit barriers because they involve costs or contractual obligations that a company would need to consider when exiting a market.

All of the Following May Be Exit Barriers Except