_____________________________ are the merchants' costs of changing prices.

Question

Quizplus · Accepted Answer

Menu costs refer to the expenses incurred by a firm in changing its prices. These costs include the costs of printing new price lists, the costs of updating price tags and labels, and the costs of informing customers of the new prices. Transaction costs are the costs associated with completing a transaction, search costs refer to the costs involved in searching for a product or service, and marginal costs refer to the additional cost incurred when producing one additional unit of output.

_____________________________ Are the Merchants' Costs of Changing Prices