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

Employee health benefit costs (A), treatment, storage and disposal costs (B), and penalties for terminating contracts with raw material suppliers (C) are all examples of exit barriers that can make it difficult for a company to leave a particular market or industry. However, increasing opportunity cost of production (D) is not an exit barrier; rather, it is a factor that may make a company more likely to exit a particular market or industry. When the opportunity cost of production in a particular market or industry becomes too high, a company may choose to allocate its resources elsewhere, even if it means exiting that market or industry entirely.

All of the Following May Be Exit Barriers EXCEPT