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Question
State the meaning of selling cost with an example.
Solution
Under monopolistic competition as the products are differentiated, the producer has to incur expenses to make his brand popular. The expenditure involved in selling the product is called “selling cost”.
According to Prof.Chamberlin, selling cost is the cost incurred in order to alter the position or shape of the demand curve for a product.
Under perfect competition and monopoly, there is soiling COM.
(Eg.) Advertisements, Free services, Home delivery, etc.
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RELATED QUESTIONS
Give economic term:
The market where there are few sellers.
Explain the features of Oligopoly.
Price leadership is the attribute of ______.
An example of selling cost is ______.
What is selling cost?
State with reason whether you agree or disagree with the following statement:
Interdependence is one of the important features of oligopoly.
