Answer:
A group of uniform rental companies agreed that they would not charge less than $5 per week per uniform even before the newly opened chicken plant contacted them for bids. This is an example of collusion.
Explanation:
A collusion is defined as an illegal cooperation that aims to deceive. In the example, the suppliers of a good [the uniforms, in this case] are agreeing amongst them to not sell the good below a certain bound so that they can maximize their earnings. This practice is illegal and in many cases is penalized because the collusion goes against the principles of healthy compeititon in a market by preventing it to define its own equilibrium price. It artificially rises the prices and creates distortions in the market.
