Due to menu costs, many firms in the economy will increase their output:
A) only after they raise the price at which they are willing to sell their output.
B) and then raise the price at which they are willing to sell their output.
C) instead of raising the price at which they sell their output.
D) or raise the price at which they sell their output, but never both.

Question

Quizplus · Accepted Answer

The Answer of Due to menu costs, many firms in the economy will increase their output:
A) only after they raise the price at which they are willing to sell their output.
B) and then raise the price at which they are willing to sell their output.
C) instead of raising the price at which they sell their output.
D) or raise the price at which they sell their output, but never both.

Due to Menu Costs, Many Firms in the Economy Will