Question

Fitnit and Fittin' are firms engaging in explicit collusion when they indirectly coordinate actions by signaling their intention to reduce output and maintain pricing above competitive levels

Answer 1

Answer: B) FALSE

Explanation:

Firms engaging in EXPLICIT COLLUSION reach a formal agreement which is more often than not, in secret, to influence prices and act somewhat as monopolies.

What Fitnit and Fittins did however is known as TACIT COLLUSION as their actions only indirectly affected prices.