Multiple Choice
CharmingBells Inc. has been running into a loss gradually, but the board of directors are reluctant to shut the company down because it has invested millions of dollars' worth of equipment which can only be used in that industry. Moreover, the people in CharmingBells Inc. have become emotionally attached to the company and do not want the company completely shut down. This scenario best illustrates ________.
A) high fixed costs
B) used production capacity
C) high exit barriers
D) unused production capacity
Correct Answer:
Verified
Correct Answer:
Verified
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