Menu costs will:
A)increase the amount of training of workers.
B)result in price wars between businesses.
C)increase the legal minimum wage.
D)make prices inflexible downward.

Question

Quizplus · Accepted Answer

Menu costs refer to the costs that businesses incur when they change their prices. These costs include the printing and distribution of new menus, the reprogramming of cash registers, and the training of employees. Because of these costs, businesses may be hesitant to lower their prices, making prices inflexible downward.

Menu Costs Will