4. Define menu cost. Why might small menu costs lead to price stickiness in monopolistically competitive markets
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4. Define menu cost. Why might small menu costs lead to price stickiness in monopolistically competitive markets but not in perfectly competitive markets? Why can a monopolistically competitive firm profitably meet demand at its fixed price when actual demand is greater than the firm anticipated?
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Related Book For 
Macroeconomics Value Edition
ISBN: 978-0136114895
7th Edition
Authors: Andrew B. Abel ,Ben Bernanke ,Dean Croushore
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