There are no selling costs under perfect competition. Why? - Vidyadip

Question

There are no selling costs under perfect competition. Why?

✓

Answer

Selling costs are the costs incurred by a firm to promote its salés. A firm under perfect competition sells homogeneous products and faces a horizontal straight line demand curve. It can sell whatever amount it wishes to sell at the existing price. So, selling costs are not required.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "2 Marks Question" from Market Equilibrium→Market Equilibrium — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

What do you understand by the term “slope of the demand curve'?

Explain why public goods must be provided by the government?

Give the meaning of factor income.

Give three sources each of demand and supply of foreign exchange.

Define intermediate consumption and explain it with an example. How is it different from final consumption?

'Indian paper currency is inconvertible'. Discuss.

Calculate the value of money multiplier and total deposit created if initial deposit is of ₹ 1,000 crore and LRR is 20%.

If the Nominal GDP is ₹ 600 and Price Index (base = 100) is 120, calculate the Real GDP.

Explain any two factors that affect the price of elasticity demand.

OR

How do the following affect the price elasticity of demand?

Number of substitutes available for the good.
Proportion of income spent on the good.
Nature of the good.

A firm supplies a certain quantity of a good at a price of 10 per unit. When price changes to 9 per unit, the firm supplies 10 units less. Price Elasticity of Supply is 1. What is the quantity supplied before price change?