Costs incurred by a firm when it changes its prices are called ________ costs.
A) opportunity
B) fixed
C) menu
D) variable
E) advertising

Question

Quizplus · Accepted Answer

The costs incurred by a firm when it changes its prices are called menu costs. These costs include the cost of reprinting menus, updating price lists, and communicating the changes to customers. While opportunity costs, fixed costs, variable costs, and advertising costs may all be relevant to a firm's pricing decisions, they are not specifically related to the costs of changing prices.

Costs Incurred by a Firm When It Changes Its Prices