According to the Menu Cost Theory,firms Will Be Slow in Changing

Multiple Choice

According to the menu cost theory,firms will be slow in changing their prices because

A) if prices changed frequently, individuals would reduce their demand for that good because of uncertainty.
B) frequent price changes would be a sign of monopolistic behavior.
C) the cost of changing the price might exceed the additional revenue the price change would generate.
D) demand for their product would fall because consumers would purchase goods from firms that had not raised their prices.