If L.L.Bean decides to increase its prices due to general inflation, it must reprint the millions of catalogs it has already produced and distributed. The costs associated with recreating these catalogs would be classified as:
A) menu costs.
B) shoe-leather costs.
C) tax distortions.
D) printing costs.

Question

Quizplus · Accepted Answer

Menu costs refer to the expenses businesses incur when they need to change their prices, such as reprinting menus, catalogs, or price lists, due to inflation or other reasons.

If LLBean Decides to Increase Its Prices Due to General Inflation