Question

Which of the following market forms, selling cost is absent?

(a) Perfect competition

(b) oligopoly

(c) None of the above

(D) Both A and B​

Answer 1

Answer:

The answer is perfect competition.

Answer 2

Option a is the correct answer.

Selling cost is absent in perfect competition.

1. Since all the product in perfect competition are homogenous and a firm is a price taker. Therefore there is no selling cost in perfect competition.
2. In order to increase their sales, the sellers do not have to indulge in activities like advertisements to increase their sales. This is so because both sellers and buyers have perfect knowledge of the market.