Menu costs refer to:
A)the money,time,and opportunity used to change prices to keep pace with inflation.
B)the time,money,and effort one has to spend managing cash in the face of inflation.
C)being penalized via taxes for making more money in dollars,even though real purchasing power hasn't changed at all.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

Menu costs are the costs that businesses have to incur in order to change the prices of their goods or services. These costs include the time, money, and opportunity costs associated with updating price lists, changing price tags, and advertising new prices in response to inflation or other economic factors. Therefore, choice A is the correct answer because it accurately describes menu costs.

Menu Costs Refer To