Menu Costs

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Dictionary Says

Definition of 'Menu Costs'

An economic term used to describe the cost incurred by firms in order to change their prices. How expensive it is to change prices depends on the type of firm. For example, it may be necessary to reprint menus, update price lists or retag merchandise on the shelf. Even when there are few apparent costs to changing prices, changing prices may make customers apprehensive about buying at a given price, resulting in a menu cost of lost sales.
Investopedia Says

Investopedia explains 'Menu Costs'

The net result of menu costs is that prices are sticky. That is to say, firms are hesitant to change their prices until there is a sufficient disparity between the firm's current price and the equilibrium market price. In theory, a firm should not change its price until the price change will result in enough additional revenues to cover the menu costs. In practice, however, it may be difficult to determine the equilibrium market price or to account for all menu costs, so it is hard for firms and consumers to behave precisely in this manner.
Search results for

'Menu Costs'

  • McDonald's Off The Dollar Menu

    http://stocks.investopedia.com/stock-analysis/2011/McDonalds-Off-The-Dollar-Menu-MCD-SYY-JACK-SONC1028.aspx
    ... through costs have not been climbing as much as these at-home costs, so the ... As world
    travelers already know, the McDonalds menu is not universal; the menu in ...

  • Top Tips For Sticking To A Thanksgiving Budget

    http://www.investopedia.com/articles/pf/08/cut-down-thanksgiving-costs.asp
    ... Cut Costs and Stretch Dollars In addition to having a strategy for smart shopping,
    try a few of the following tips to stretch your budget: Trim the menu - In ...

  • Inflation: What Is Inflation? | Investopedia

    http://www.investopedia.com/university/inflation/inflation1.asp
    ... living. The entire economy must absorb repricing costs ("menu costs") as
    price lists, labels, menus and more have to be updated. If ...

  • Choosing Quality Mutual Funds | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/
    ... 8) Fund Costs and Expenses. Overview Of Mutual Fund Expenses; Fund IQ No.6: Costs
    and Expenses; Scoring Fund Cost and Expense Data. 9) Fund Performance Metrics. ...

  • Inflation: Conclusion | Investopedia

    http://www.investopedia.com/university/inflation/inflation5.asp
    ... When there is unanticipated inflation, creditors lose, people on a fixed-income
    lose, "menu costs" go up, uncertainty reduces spending and exporters aren't as ...

  • Ways To Budget For A New Year's Party - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/Ways-To-Budget-For-A-New-Years-Party.aspx
    ... Selecting a simple menu of snacks and appetizers will help to keep your costs down,
    and making a number of your menu items yourself is less expensive than ...

  • Overview Of Mutual Fund Expenses | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp8-fund-cost-expense
    ... annual expenses. However, these costs are not included in a fund's expense
    ratio. They ... win-win relationship. Return to the Main Menu. ...

  • Overview Of Mutual Fund Expenses | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp8-fund-cost-expense/default.asp
    ... annual expenses. However, these costs are not included in a fund's expense
    ratio. They ... win-win relationship. Return to the Main Menu. ...

  • 10 New YearÂ’s Resolutions To Cut Costs In Your Home ...

    http://financialedge.investopedia.com/financial-edge/0112/10-New-Years-Resolutions-To-Cut-Costs-In-Your-Home.aspx
    ... Stop Buying Bottled Water and Get a Water Filter Cut costs on your grocery bill
    by installing a water ... That way, you can add more variety to your dinner menu. ...

  • Fund IQ No.6: Costs and Expenses | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp8-fund-cost-expense/fund-iq6.asp
    ... (To learn more, read The Sharpe Ratio Can Oversimplify Risk.). 2. When it comes
    to mutual fund costs and expenses, a mutual fund's ... Return to the Main Menu. ...

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