In this article we will discuss about Selling Costs. After reading this article you will learn about: 1. Subject Matter of Selling Costs 2. The Curve of Selling Costs and Its Influence on Production Costs 3. Influence of Selling Costs on the Demand Curve 4. Price-Output Determination under Selling Costs. Subject Matter of Selling Costs: Selling costs are the expenses [...]
Let us learn about the Analysis of Selling Cost. As far as sales promotion is concerned, monopolistic competition differs from perfect competition. No individual firm under perfect competition has any incentive to advertise its product since products of all firms are homogeneous or identical in quality. Gains from advertising by an individual firm have spill-over effects in the sense that [...]
Selling Costs: Definitions, Assumptions, Equilibrium! Selling costs play the key role in monopolistic competition and oligopoly. Under these market forms, the firms have to compete to promote their sale by spending on advertisements and publicity. Moreover, producer has not to decide about price and output and he also keeps in view how to maximize the profit. Thus, cost on advertisement [...]