Barriers that place a high cost on the abandonment of a market are called ________.
A) table stakes
B) entry barriers
C) exit barriers
D) proprietary barriers

Question

Quizplus · Accepted Answer

Exit barriers are obstacles that make it expensive or difficult for a company to leave a market. These can include high costs associated with shutting down operations, fixed assets that cannot be easily sold off, contractual obligations with suppliers or customers, or legal and regulatory requirements. As a result, companies may choose to continue investing in a market even if it is no longer profitable, rather than incur the costs of exiting.

Barriers That Place a High Cost on the Abandonment of a Market