Q.What is Selling Cost ?

Selling cost is the outlay a firm makes on advertisement and promotion to increase the demand for its product, typical of monopolistic competition.

Meaning of selling cost:

Selling cost is the expenditure that a firm incurs specifically to promote the sale of its product and to attract buyers - as distinct from production cost, which is spent on making the product. Its purpose is to create, maintain or increase the demand for the firm's product and to shift the demand curve in its favour.

Examples of selling cost:

• Advertisement in newspapers, television, radio and online media.
• Sales promotion such as free samples, discounts and gifts.
• Salaries and commissions of salesmen and agents.
• Window display and other publicity expenses. …