Which of the Following Can Create a "Real Rigidity" in Price

question 43

Multiple Choice

Which of the following can create a "real rigidity" in price setting?

• A) constant marginal cost as output rises
• B) fixed contracts to sell at a given price
• C) existing advertisements which include prices
• D) item prices for goods on store shelves
• E) menu costs

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Definitions:

Immigration Quotas

Limits set by governments on the number of immigrants allowed to enter a country, often based on nationality or other criteria.

Political Asylum

A protection granted by a country to foreign nationals who have fled their own country due to political persecution.

Naturalized Citizens

Individuals not born in a country but who have legally obtained its citizenship after fulfilling certain criteria set by the nation's laws.

Anticommunist Measures

Policies or actions implemented to counteract or suppress communist ideology and influences.