How to reduce the incidence of selling cost under monopolistic competition because of which price tends to be higher than what it would have been if production cost would have been the sole basis?

How to reduce the incidence of selling cost under monopolistic competi

1.	How to reduce the incidence of selling cost under monopolistic competition because of which price tends to be higher than what it would have been if production cost would have been the sole basis?
Answer» Solution :The cost incurred on advertisement and salesmanship constitutes selling cost which affects the MINDS of buyers in FAVOUR of CERTAIN commodities. In this situation buyers should care for INTRINSIC VALUE and utility. This way the role of selling cost will be reduced. Value: Analytic

Discussion

No Comment Found

Related InterviewSolutions

Increase in stock of goods held by a consumer will contribute to capital formation.
Explain the meaning of diminshing marginal rate of substitution with the help of a numercial example
Explain the meaning of inflationary gap and deflationary gap . Explain any one measure by which these gaps can b e reduced.
Distinguish between average propensity to consume and marginal propensity to consume. The value fo which of these two can be greater than oneand when ?
Componenet of current account in BOP
How are exports affected by depreciation of foreign currency ? Explain
(a) State any two precautions that must be taken into consideration while estimating national income by value added method. In an economy following transcations took place. Calculate value of output value added by Firm B: (i) Firm A sold to firm B goods of 80 crore, to firm C 50 crore to household 30 crore and goods of value 10 crore remains unsold (iii) Firm B sold firm C goods of 70 crore, to firm D 40crore, goods of value 30 crore were exported and goods of value 5 crore was gold to government Or Differentiate betweeen National Current Places and National Income at Constant Prices. Which of the two presents a better view of the economic growth of economy and why?
A firm gets maximum profits only if difference between average revenue and average cost is the maximum.
Reserve repo rate is the rate at which Central Bank lends funds to banks.
Commerical banksdo not contributeto quantumof moneysupplyin the economyas they do nothavenote- issuingauthority.

How to reduce the incidence of selling cost under monopolistic competition because of which price tends to be higher than what it would have been if production cost would have been the sole basis?

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment