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.
D) labor costs associated with inflation.

Question

Quizplus · Accepted Answer

Menu costs refer to the expenses a business incurs to change its prices in response to inflation. These costs include the money and time spent on reprinting menus, updating price lists, and communicating the new prices to customers.

Menu Costs Refer To