Menu costs ________
A) are the cost a firm bears when it changes its prices
B) are one source of price stickiness because changing prices involves many hidden costs
C) are one source of price stickiness because firms may not want to change their "menus" too often and risk alienating customers
D) all of the above
E) none of the above
D
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The balance sheet of a bank shows its
A) assets and liabilities. B) earnings and expenses. C) revenues and costs. D) profits and losses.
Refer to Figure 5-6. Why is there a deadweight loss?
A) because the marginal private cost for each additional unit between Q1 and Q2 exceeds the marginal private benefit B) because the marginal private benefit for each additional unit between Q1 and Q2 exceeds the marginal cost C) because the marginal social cost for each additional unit between Q1 and Q2 exceeds the marginal social benefit D) because the marginal social benefit for each additional unit between Q1 and Q2 exceeds the marginal cost
A consequence of increasing marginal costs of producing laptop computers in the United States is
A) the United States will not export laptop computers. B) the United States will stop short of complete specialization in the production of laptop computers. C) the United States will likely impose trade restrictions on imported laptop computers. D) the United States will import laptop computers from countries that don't experience increasing marginal costs.
An increase in the ____ interest rate will lead to an increase in the ____
a. nominal; demand for loanable funds b. nominal; supply of loanable funds c. real; quantity of loanable funds supplied d. real; quantity of loanable funds demanded