The menu cost of inflation involves
A) the mistakes producers make in adjusting prices.
B) the mistake people make when they do not know the actual rate of inflation.
C) cost-of-living adjustments.
D) the costs associated with changing price lists.

Question

Quizplus · Accepted Answer

The menu cost of inflation refers to the costs associated with changing price lists, such as the cost of printing new menus, updating software, and changing price tags. It does not refer to mistakes in price adjustment or cost-of-living adjustments.

The Menu Cost of Inflation Involves