ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Menu cost
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Shoe leather cost
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Cost for savers
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Fixed incomes
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Borrowers
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Detailed explanation-1: -Menu costs are a type of transaction cost incurred by firms when they change their prices. Menu costs are one microeconomic explanation offered by New Keynesian economists for macroeconomic price-stickiness, which may cause an economy to fail to adjust to changing macroeconomic conditions.
Detailed explanation-2: -Gross Profit Method-This method involves in finding gross profit per person and adding the price of an extra item to the main meal cost and arriving at the selling price of each menu items. Food Cost Method – In India, it is the most common method of fixing price.
Detailed explanation-3: -Option d) is correct: all of the above are examples of menu costs. The menu costs are those which are incurred when new prices are decided, printed or advertised.
Detailed explanation-4: -Deciding your menu costs, better known by the term “Menu Pricing” is the process of calculating the price at which you want to sell different dishes at your restaurant. When you decide your menu cost, you calculate the cost to prepare the dish along with other overhead expenses that go into making the dish.