Costs That Deter Firms from Changing Prices in Response to Demand

question 152

Multiple Choice

Costs that deter firms from changing prices in response to demand changes are known as

• A)sticky costs.
• B)menu costs.
• C)policy costs.
• D)production costs.

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Definitions:

Genus

A class or category of things that share common characteristics, often used in the classification of organisms or in defining concepts.

Language

A system of communication used by a particular country or community, composed of spoken or written symbols.

Species

A community of similar life forms that are capable of reproducing or swapping genetic information.

Genus

A term in logic and philosophy that refers to a general class that encompasses multiple specific instances, or species, sharing common characteristics.