Question

Selling costs are absent in a monopoly market because:

Options

• there are many sellers.

• all goods are close substitutes.

• all goods are differentiated.

• there is only one seller.

Answer 1

there is only one seller.

Explanation:

In a monopoly market, a single seller controls the entire supply and there are no close substitutes for the product. Due to the absence of competition, the monopolist does not have to spend on selling costs like advertising or promotions to distinguish or promote the product.