Question

28. A firm in a monopolistic market require to incur which cost as promotional expenses?
a. Production cost
b. Selling cost
c. Storage cost
d. Transportation cost​

Answer 1

Answer:

selling cost

Explanation:

yy because when goods are produced and then if we want to sell them we require to promote or advertise the product and its details so selling cost require to incur promotional expenses...

Answer 2

Answer:

Option (B) is correct.

Explanation:

In this question, we have to identify the cost that is incurred as a promotional expense. From the given options the selling cost is cost as promotional expenses because the selling cost of the product includes the costs that are incurred during the selling process of the goods. With the help of the selling cost, the company wants to increase the demand for the product and wants to change the demand curve. Selling cost includes all the promotional expenses like advertising, samples, and sales promotion.

Hence, option (b) is correct.

Option (a) is not correct because it does include the promotional expenses.

Option (c) is not correct because it does include the promotional expenses.

Option (d) is not correct because it does include the promotional expenses.

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