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Barriers to exit are obstacles that make it difficult for a company to leave an industry or market. These can include high sunk costs, contractual obligations, regulatory constraints, and loss of customer goodwill. Such barriers can lead to firms remaining in unprofitable markets, which can impact their overall financial health and strategic decision-making. Additionally, emotional factors, such as commitment to employees or stakeholders, can also play a role in a firm's reluctance to exit.

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