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Why is there no need for selling cost under perfect competition?

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प्रश्न

Why is there no need for selling cost under perfect competition?

Name a market where selling cost is not required. Give a reason for your answer.

Why are selling costs not incurred in perfect competition? 

एक पंक्ति में उत्तर
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उत्तर

Selling costs are not incurred in perfect competition as there exists perfect knowledge among the buyers and sellers of homogeneous products. 

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अध्याय 5: Meaning and Types of Markets - Exercise [पृष्ठ ११६]

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संबंधित प्रश्न

How is Perfect competitive market is different from a monopoly market?


Pick the option which does not belong to the group.


Products sold by each firm in a perfectly competitive market are perfect substitutes of each other. 


Read the following statements carefully and choose the correct alternative:

Assertion (A): Price discrimination is possible under monopoly.

Reason (R): A monopolist can charge different prices in different markets because different sets of consumers - rich and poor - have different price elasticity of demand for the monopolist's product.


Read the following statements carefully and choose the correct alternative:

Assertion (A): Buyers are ready to pay different prices for the product produced by different firms under perfect competition.

Reason (R): The products offered for sale in the perfect market are homogeneous.


To which market is product differentiation relevant?


Identify the market form of the following:

Motor car market in India.


Identify the market form for the following:

Perfectly elastic demand.


State the market form of the following commodity.

Automobiles


Identify the market form for the item given below:

A single seller


Identify the market form for the item given below:

Product differentiation


Define monopoly.


Which type of market structure is the following? Give reason.

Lipstick


To which market is price discrimination relevant?


What does perfectly elastic demand curve faced by a competitive firm indicate?


Identify the market form from the following.

Price discrimination


Why do producers incur high selling costs in an imperfect market?


Name the characteristic which makes monopolistic competition different from perfect competition.


What is a price making firm?


In which type of market are firms interdependent and a few large firms dominate?


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