Menu costs will:
A) Increase the amount of training of workers
B) Result in price wars between businesses
C) Increase the legal minimum wage
D) Make prices inflexible downward

Question

Quizplus · Accepted Answer

Menu costs make prices inflexible downward, meaning that a business may be reluctant to lower their prices due to the costs associated with changing their menus, price tags, or advertising materials. This can lead to stickier prices and less responsiveness to changes in demand or market conditions.

Menu Costs Will