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One Reason Why,in Reality,prices Are Sticky in the Short Run

Question 7

Multiple Choice

One reason why,in reality,prices are sticky in the short run is because


A) there are often costs to firms from changing prices.
B) purely competitive firms have no control over the price of their product and therefore cannot change the price, even if the market warrants a price change.
C) in the short run, the cost to changing prices always outweighs any benefit.
D) firms do not have time to react to macroeconomic shocks in the short run.

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