Mr. Krabs is thinking about closing The Krusty Krab (much to SpongeBob's chagrin) because he is not making as much money as he once did. Mr. Krabs discovers that there is a large market for used restaurant fixtures and equipment. He also finds that it will be easy to sell his building because it can be converted into any number of other kinds of businesses. Mr. Krabs' research demonstrates the existence of ________ in the restaurant industry.
A) high capital requirements
B) intense rivalry
C) low exit barriers
D) little customer loyalty

Question

Quizplus · Accepted Answer

Low exit barriers refer to the ease with which a business can leave an industry. Mr. Krabs finds it easy to sell his equipment and building, indicating low exit barriers in the restaurant industry.

Mr Krabs Is Thinking About Closing the Krusty Krab (Much