High exit barriers are factors that cause a company to remain in an industry even though the profitability of doing so may be questionable.

Question

Quizplus · Accepted Answer

High exit barriers, such as high fixed costs, specialized assets, or strong emotional attachments to the industry, can make it difficult for a company to leave an industry and therefore may continue to operate even if the profitability is low.

High Exit Barriers Are Factors That Cause a Company to Remain