Final answer:
A long-term labor agreement that cannot be renegotiated can be considered an example of an exit barrier. It restricts the flexibility of companies to adjust their workforce or labor costs, making it less attractive to exit the industry. Therefore, the statement is true.
Step-by-step explanation:
A long-term labor agreement that cannot be renegotiated can be considered an example of an exit barrier. Exit barriers are obstacles that make it difficult for firms to leave an industry. In this case, the long-term labor agreement restricts the flexibility of the company to adjust its workforce or labor costs, which can make it less attractive for the company to exit the industry.
For example, if a company has a long-term labor agreement that guarantees high wages and benefits for employees, it may be financially burdensome for the company to shut down or exit the industry, as it would still be obligated to fulfill the terms of the agreement.
Therefore, the statement is true.