Menu Cost? Use Blackboard

In the short-run (spesifically on classical perspective), we know that firms face sticky price. Simply, product price fluctuation must be less than inflation (which is change everyday). Why? We learn one of the factor is menu cost. Firms can't instantly change the price because they must add additional cost to print out new menu list, updating menus, price lists, brochures, and other materials when prices change in an economy (this example precisely happen on resaturant). It's relevant? My answer, bigger the size, of a firms this assumption more close to reality. But, in small firms situation, blackboard ought to be an answer.



All you need no more than a set of chalk and an eraser.