McqMate
| Q. |
Which one of the following is not a feature of monopoly? |
| A. | Single seller of the product |
| B. | Heavy selling costs |
| C. | Barriers to entry of new firms |
| D. | Price discriminations |
| Answer» B. Heavy selling costs | |
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Explanation: Heavy selling cost is one of the defining features of an oligopoly. Firms resort to heavy selling cost to attract customers. Under this market form, the firms have to compete to promote their sale by largely homogenous products, differentiated mainly by heavy advertising and promotional expenditure that ultimately adds to the total selling cost. |
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