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Selling cost have to be incurred in case of
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- Perfect Competition
- Monopoly
- Monopolistic Competition
- None of the given options
- Perfect Competition
Correct Option: C
Selling costs are the expenses on advertisement, salesmanship, free sampling, free service, door-todoor canvassing, and so on. There is no selling problem under perfect competition where the product is homogeneous. Under monopolistic competition where the product is differentiated, selling costs are essential to push up the sales. They are incurred to persuade a buyer to purchase one product in preference to another.