Musashi manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. His employees regularly deal with customer annoyance over the frequent price changes. This is an example of the ? of inflation.

a. menu costs
b. shoe-leather costs
c. unit-of-account costs

Menu cost

Explanation:

Menu cost is the cost to a firm due to constant price changes. The name was coined from restaurants who changed their prices constantly by printing new menus.

For a wider definition, the menu costs also include the re-tagging of items, updating of computer systems, and hiring consultants in order to develop new pricing strategies and the costs of printing menus.

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