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What are Menu Costs?

 , updated on December 06, 2015
Menu costs are the costs a firm incurs to change its prices. The name stems from the cost for a restaurant to print new menus.
The cost of changing prices is one way to explain sticky prices, or the tendency for prices to stay at an established range when economic forces are pushing them up or down.
Menu costs differ widely by industry. For example, ecommerce firms typically have low menu costs and may frequently experiment with prices.
Overview: Menu Costs
TypeBusiness Cost
DefinitionThe cost of changing your prices.
ExamplesAdvertising and promotion of new prices.
Packaging and signage.
Legal notices and regulatory approvals.
Related ConceptsSticky Prices

Business Costs

This is the complete list of articles we have written about business costs.
Activity Cost
Business Equipment
Capital Improvement
Cost Of Living
Fixed Costs
Friction Cost
Employee Costs
Holding Costs
Intangible Cost
Operating Cost
Operating Expenses
Legacy Costs
Outlay Cost
Lifetime Cost
Overhead Costs
Menu Costs
Relevant Cost
Sunk Costs
Tangible Cost
Operational Costs
Travel Expenses
Opportunity Cost
Variable Costs
Prospective Cost
Switching Costs
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