The menu cost theory suggests that

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The menu cost theory suggests that frequent price changes are costly for firms, as they have to incur expenses in updating their menus, catalogs, advertisements, and other marketing materials. This cost may deter firms from adjusting their prices even in response to changes in demand or supply conditions, leading to a sluggish adjustment of wages and prices. However, this does not imply that there will be no unemployment, that wages and prices move freely and quickly, or that perfect competition does not exist.

The Menu Cost Theory Suggests That