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:

Top Management

The highest-level executives in an organization, responsible for setting strategic goals, making major decisions, and representing corporate interests.

Nonmonetary Rewards

Benefits given to employees that do not involve direct payment, such as recognition, awards, or opportunities for professional growth.

Programmed Decision

A decision made using a rule, procedure, or quantitative method.

Organization

An organization is a group of people working together in a structured way to achieve collective goals and objectives.