Menu costs refer to the opportunity costs of the resources used to change prices. Specifically, menu costs capture the expenses businesses incur when adjusting their prices, such as the costs of reprinting menus and updating software systems. Keeping prices unchanged avoids these menu costs but results in inefficient pricing if costs or demand changes.

1. Menu costs refer to the:
Group of answer choices
a. none of the above
b. opportunity costs of the resources used to administer the tax system
c. opportunity costs of the resources used to hire more labour
d. opportunity cost of the resources used to vary the nominal rate of interest
e. opportunity costs of the resources used to change prices