Highlight the importance of selling costs in a monopolistically compet – InterviewSolution

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1.	Highlight the importance of selling costs in a monopolistically competitive market.
Answer» Under monopolistic competition, products are differentiated and these differences are made known to the buyers through selling costs. Selling costs refer to the expenses incurred on marketing, sales promotion and advertisement of the product. Such costs are incurred to persuade the buyers to buy a particular brand of the product in preference to competitor’s brand. Due to this reason, selling costs constitute a substantial part of the total cost under monopolistic competition.

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