An Owner of a Stable of Racehorses Has Been Earning

question 157

Multiple Choice

An owner of a stable of racehorses has been earning below-average returns for over 15 years. To a colleague, he expressed his determination to stay in horse racing until he died because "racing is in my blood." This individual is probably still racing horses because of

• A) high barriers to exit.
• B) high switching costs.
• C) high fixed costs.
• D) low levels of competitive rivalry.

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Definitions:

Seed Coat

The outer protective layer of a seed that shields the embryonic plant from damage and disease.

Protective Coating

A layer or cover applied to objects or materials to shield them from harm, such as corrosion, weathering, or physical damage.

Embryo

An early developmental stage of a multicellular organism following fertilization, during which rapid cell division and growth occur.

Sepals

The outer parts of the flower, typically green and leaf-like, that protect the developing bud.