Which of the Following Is an Implication of High Exit

question 71

Multiple Choice

Which of the following is an implication of high exit barriers in an industry?

• A) The number of underperforming firms in the industry will be low.
• B) The industry will face excess capacity.
• C) The competitive pressure among existing firms will be low.
• D) The industry will be more attractive for new entrants.

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Definitions:

Employment

The condition of having paid work; involves individuals who are currently holding a job in the economy.

Department of Agriculture

A government department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food.

Minimum Food Budget

The smallest amount of money needed to buy the essential food items for maintaining health and well-being.

Official Poverty Line

A governmental threshold which defines the minimum income level necessary to meet basic living needs and thus categorizes individuals or families as living in poverty.