Selling Costs:
From ‘product differentiation’, we can deduce that the producer under monopolistic competition has to acquire expenses to popularize his brand. These expenses included in selling the product are termed as selling cost. According to Prof. Chamberlin, selling cost is “the cost acquired in order to change the position or shape of the demand curve for a product”. Most significant form of selling cost is advertisement. The sales promotion by advertisement is termed as non-price competition.
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