what is selling cost of perfect competition
Answers
Answer:
There is no need for a firm working under perfect competition to undertake advertisement expenditure or to incur other types of selling costs, since by assumption, the product produced by all firms in the perfectly competitive industry is homogeneous, and an individual firm can sell as much quantity of the product as it likes at the given price.
If a perfectly competitive firm advertises for the product, the consumers who are influenced by it may purchase the product from other firms in the industry, since all are selling homogeneous products. Of course, the whole perfectly competitive industry, that is, all firms together or their association may advertise to promote the sales of their product at the expense of the products of other industries.