Which of the Following Is Not an Exit Barrier for Firms

question 1

Multiple Choice

Which of the following is not an exit barrier for firms in an industry?

• A)Sunk costs
• B)Labor agreements or commitments to purchase raw materials
• C)Obligations to input suppliers
• D)Excess capacity
• E)Government restrictions

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Definitions:

Exosystem

A component of Bronfenbrenner's ecological systems theory, referring to external environments that indirectly influence the individual, such as parents' workplaces or the neighborhood's social conditions.

Chronosystem

In ecological systems theory, it refers to the patterning of environmental events and transitions over the life course, as well as socio-historical circumstances that affect an individual's development.

Environmental Events

Occurrences within the natural or built environment that can influence individuals' behaviors, health, and development.

Sociohistorical Circumstances

The social and historical context or background that influences an individual's life or a community.