GENERAL KNOWLEDGE

Detailed explanation-1: -The products sold under monopolistic competition are differentiated from each other. The products of the monopolistic firm is differentiated on the basis of certain characteristics as colour, shape size, etc. Such product differentiation further leads to selling costs by the firms.

Detailed explanation-2: -Selling expenses are the costs incurred by an organization’s sales department for selling companies products or providing services; this is mainly related to distributing, marketing & selling. This cost is not directly related to the production or manufacturing of any product or delivery of any services.

Detailed explanation-3: -Selling cost is incurred by a firm in Monopolistic competition. 4. A monopolist can control the supply of goods.