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Menu costs in relation to inflation refer to:
Costs of finding better rates of return
Costs of altering price lists
Costs of money increasing its value
Costs of revaluing the currency
Menu costs refer to an economic term used to describe the cost incurred by firms in order to change their prices. How expensive it is to change prices depends on the type of firm. For example, it may be necessary to reprint menus, update price lists, contact a distribution and sales network or manually re-tag merchandise on the shelf. Even when there are few apparent menu costs, changing prices may make customers apprehensive about buying at the new price. This purchasing hesitancy can result in a subtle type of menu cost in terms of lost potential sales.
By: Srishti Gupta ProfileResourcesReport error
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