What are 'menu costs'?
A)The full list of a firm's costs of production.
B)The costs to a firm of changing prices.
C)The cost to a household of borrowing money when there is deflation.
D)The opportunity cost of dining in a restaurant instead of at home.

Question

Quizplus · Accepted Answer

Menu costs refer to the costs incurred by firms in changing prices, such as the cost of printing new menus or updating price tags. These costs can deter firms from adjusting prices frequently or quickly, which can lead to sluggish price adjustments in response to changes in demand or supply.

What Are 'Menu Costs