Menu cost models
A)explain the cost of menus.
B)are identical to real business cycle models.
C)are models in which prices can be changed at a cost.
D)were constructed by John Maynard Keynes.
E)are models of the restaurant industry.

Question

Quizplus · Accepted Answer

Menu cost models are models in which prices can be changed at a cost. The cost of changing prices, or updating menus, is taken into account in determining how frequently prices will be changed by businesses.

Menu Cost Models