According to the menu cost theory, firms will be slow in changing their prices because
A. frequent price changes would be a sign of monopolistic behavior.
B. demand for their product would fall because consumers would purchase goods from firms that had not raised their prices.
C. if prices changed frequently, individuals would reduce their demand for that good because of uncertainty.
D. the cost of changing the price might exceed the additional revenue the price change would generate.
Answer: D
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a. true b. false