Price Rigidity
Price rigidity arises because MC always cuts MR at the discontinuous portion.
Any changes in cost will not affect the price at all, as shown below.
Formation of Cartel
Some form of collusion or cartel exist when oligopoly firms come together to determine price and output policies.
This is necessary to avoid price wars.
Non-Price Competition
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The techniques employed through a cost accountant in the performance of his job are identical to those used through an auditor of financial accounts.
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