Suppose that, because of inflation, a business in Russia must calculate, print, and mail a new price list to its customers each month. This is an example of

Question

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The situation described is an example of menu costs, which are the costs incurred by a firm in order to adjust its prices due to inflation or other economic conditions. These costs include the time and money required to calculate and print new price lists, as well as the inconvenience to customers who must obtain and adjust to the new prices.

Suppose That, Because of Inflation, a Business in Russia Must