Explain the concept of 'selling cost' under monopolistic competition.

1.	Explain the concept of 'selling cost' under monopolistic competition.
Answer» SOLUTION :In MONOPOLISTIC competition, each firm tries to promote its sales through advertisement. Such a sales promotion EXPENDITURE is known as selling costs. It INVOLVES all the advertising techniques like publicity through newspapers, magazine, television and othe media. Such costs create more demand, by persuading a buyer to buy the product.

Discussion