What do you understand by the concept of selling cost under monopolistic competition. Give its implication.

Selling costs basically means advertisement expenses and sales promotion expenses incurred by a monopolistic firm to distinguish its products on qualitative bases from its competitors. It is due to selling costs that we have the concept of product differentiation in the monopolistic market structure, which in turn, enables the monopolistic firms to enjoy a degree of monopoly control over its price and quantity to be sold in the market.

You can follow the link below to refer to this concept in detail.

https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-microeconomics/non-competitive-markets/338_1985_5826#slide2_monopolistic-competition-and-short-run-and-long-run-equilibrium Amit • Now