The cost a business faces when changing prices in response to an economic shock is called
What will be an ideal response?
a menu cost.
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The observation that the demand curve for grape jelly shifts rightward every time the price of peanut butter falls means that grape jelly and peanut butter are
A) complements. B) substitutes. C) inferior goods. D) normal goods.
Moe's Sweaters is a firm in perfect competition. Moe's customers don't know who the firm's workers are
If Moe is the only employer in the market who discriminates against women by paying them less than he pays to equally qualified men, his firm will A) lower its labor cost and receive a greater economic economic profit than its competitors. B) receive a positive economic profit while its competitors will only receive a normal profit. C) not maximize its economic profit and will not survive. D) be able to lower its price and undercut the competitors.
Price discrimination occurs when
a. firms maximize their profit by setting price equal to marginal cost. b. a seller charges different prices to different consumers for the same product or service. c. a seller charges the same price to consumers for a different product or service. d. a seller charges different prices to consumers, discriminating by race or gender of the consumer.
A decrease in the availability of an important major resource such as oil shifts aggregate supply left.
Answer the following statement true (T) or false (F)