Small menu costs are a common reason offered for the existence of

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Small menu costs are most often associated with sticky prices, which means that firms are less likely to change their prices in response to changes in demand or supply. This is because the cost of updating prices is often seen as prohibitively expensive, which leads firms to keep their prices fixed even in the face of changing market conditions. Sticky wages and resource prices may also exist, but they are not as directly related to menu costs as sticky prices. Sticky output adjustments is not a term commonly used in economics, and is not related to menu costs.

Small Menu Costs Are a Common Reason Offered for the Existence