What are menu costs?
A)the full list of a firm's costs of production
B)the costs to a firm of changing prices
C)the cost to a household of borrowing money when there is deflation
D)the opportunity cost of dining in a restaurant instead of at home

Question

Quizplus · Accepted Answer

Menu costs refer specifically to the costs that a firm incurs when it changes the prices of its products or services. These costs can include the printing and distribution of new price lists, the reprogramming of systems, and the potential loss of customers who may not react positively to price changes. Thus, option B is the most accurate choice.

What Are Menu Costs