Economists call the costs associated with changing prices
A) "unnecessary costs."
B) "irrelevant costs."
C) "menu costs."
D) "unlikely costs."

Question

Quizplus · Accepted Answer

Economists refer to the costs associated with changing prices as "menu costs." These can include the physical costs of changing prices on menus, price lists, labels, and in computer systems, as well as the broader costs of updating marketing materials and the potential confusion or dissatisfaction among customers.

Economists Call the Costs Associated with Changing Prices