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Questions
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?
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Solution
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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RELATED QUESTIONS
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| Column I | Column II | ||
| A. | Demand curve under perfect competition | (i) | Indeterminate demand curve |
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| D. | Demand curve under oligopoly | (iv) | Elastic demand curve |
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