Question

As a business owner, you find that your resource prices are increasing often. Because these costs are rising, you find it necessary to change your prices frequently. This best describes:

a. future price uncertainty.
b. menu costs.
c. money illusion.
d. hyperinflation.
e. a price confusion problem.

Answer 1

Answer:

The right answer is Option b (menu costs).

Explanation:

• Menu expenses or costs would be the expenses a company entails if it modifies its pricing often, the most important approach to pay for the menu would be to keep particular pricing persistent.
• And that if an organization employee regularly changes significantly pricing owing to an improvement throughout commodity price marketing expenses are involved.

The other four choices are not connected to the given query. So the above is the right approach.