The decision about whether to change prices frequently or infrequently is an application of the:
A)principle of comparative advantage.
B)scarcity principle.
C)principle of increasing opportunity cost.
D)cost-benefit principle.

Question

Quizplus · Accepted Answer

It is costly to change prices, both in terms of menu costs and customer satisfaction. To justify changing prices, there must be an offsetting benefit from higher revenues.

The Decision About Whether to Change Prices Frequently or Infrequently