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: Select one: a. high barriers to exit. b. high switching costs. c. high fixed costs. d. low levels of competitive rivalry.

Question

Virginia Norris

Business

2 March, 11:06

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: Select one: a. high barriers to exit. b. high switching costs. c. high fixed costs. d. low levels of competitive rivalry.

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Ball · Answer 1

a. high barriers to exit

Explanation:

Barriers to exit in economics are barriers in a firm's path that wants to leave a given market or industry sector. Such obstacles cost the firm to leave the market financially, and may prevent it from doing so altogether.