The costs imposed on a firm from changing listed prices is termed:
A)the nominal cost of inflation.
B)the shoe-leather cost of inflation.
C)the menu cost of inflation.
D)the implied cost of inflation.

Question

The costs imposed on a firm from changing listed prices is termed:
A)​the nominal cost of inflation.
B)​the shoe-leather cost of inflation.
C)​the menu cost of inflation.
D)​the implied cost of inflation.

Quizplus · Accepted Answer

The term used for the costs incurred by a firm when changing the listed prices is called the menu cost of inflation. This cost includes the expenses involved in printing new menus, advertising new prices, and updating computer systems.

The Costs Imposed on a Firm from Changing Listed Prices