Answered

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Exit barriers mean that a company finds it difficult to leave the market due to financial losses.

A. True
B. False

Sagot :

GinnyAnsweridn

Final answer:

Exit barriers can prevent a company from leaving a market due to financial difficulties, impacting its decision-making and financial standing.


Explanation:

Exit barriers refer to obstacles that make it financially challenging for a company to leave a market, potentially forcing them to continue competing rather than exiting. These barriers can include costs that are higher than those of staying in the market and may prevent firms from exiting easily.

For example, if a firm has invested heavily in infrastructure or has contracts that are difficult to terminate, these can serve as exit barriers. In essence, exit barriers can influence a company's decision to stay or exit a market, impacting its financial viability.


Learn more about Exit barriers here:

https://brainly.com/question/33533759


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