Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Non Competitive markets

Question:
Selling costs become unnecessary in which of the following?
Options:
Monopoly
Monopolistic competition
Perfect competition
Both 1 and 3
Correct Answer:
Both 1 and 3
Explanation:
Selling costs refer to those expenses which are incurred for popularizing the differentiated product and increasing the demand for it. Under perfect competition due to homogeneous product and under monopoly because of absence of substitute, the selling costs become unnecessary.