The selling cost is a typical characteristic of monopolistic market. G

1.	The selling cost is a typical characteristic of monopolistic market. Give reason.
Answer» The concept of selling cost is not seen in monopoly or perfect competition. In monopolistic competitive market, the sellers try to attract the consumers by spending on advertisement, discounts, commission, attractive packaging, etc. All these form a part of selling expenses. Selling cost creates product difference in the market which then gives a particular identity to a product. For example, companies manufacturing mobile phones, soaps, etc. try to create unique identity through selling costs. Such a concept does not exist in perfect competition or monopoly. Hence, selling cost is a typical characteristic of monopolistic market.

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