Which of the following terms refers to the cost of changing price tags and price listings?
A)inflation-induced tax distortions
B)relative-price variability costs
C)shoeleather costs
D)menu costs

Question

Quizplus · Accepted Answer

Menu costs refer to the expenses that businesses incur when changing the prices of goods and services they offer. These costs include the cost of updating price tags and labels, updating online price listings, and updating other marketing materials. Therefore, the term that refers to the cost of changing price tags and price listings is menu costs (choice D).

Which of the Following Terms Refers to the Cost of Changing