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:

Balance Sheet

A report cataloging a company's total assets, financial obligations, and equity owned by shareholders at a specific moment.

Services Provided

Activities performed by a company or an individual to fulfill the needs or requirements of its customers, without resulting in the ownership of any physical products.

Billed

The process of sending or presenting an invoice to customers for goods or services provided.

Customers

Persons or organizations that buy products or services from a company.