Selling cost is the feature of Monopolistic Competition.

Explanation:

Monopolistic competition refers to a market structure where a large number of sellers offer differentiated products to buyers. In this market, each firm has a small market share and enjoys a certain degree of market power. As a result, firms engage in non-price competition to attract customers. Selling cost is an important feature of monopolistic competition. It refers to the expenses incurred by firms to promote their products and differentiate them from their competitors.

Importance of Selling Cost:

Selling cost is a significant factor in monopolistic competition because it helps firms to increase their sales and profits. By spending on advertising, packaging, branding, and other promotional activities, firms can create a unique identity for their products and attract loyal customers. This, in turn, can lead to higher market share and increased profits for the firm. Therefore, selling cost is an essential strategy for firms in monopolistic competition to differentiate themselves from their competitors and increase their market power.

Examples:

Examples of firms that incur high selling costs in monopolistic competition include Coca-Cola, Nike, and Apple. These firms spend a considerable amount of money on advertising, branding, and packaging to promote their products and create a unique identity in the market. By doing so, they can attract loyal customers who are willing to pay a premium price for their products.

Conclusion:

In conclusion, selling cost is a crucial feature of monopolistic competition. It helps firms to differentiate themselves from their competitors, increase their market power, and attract loyal customers. Therefore, firms in monopolistic competition should focus on investing in selling costs to increase their sales and profits.