Which of the following best describes "menu cost" in terms of pricing?

Menu cost refers specifically to the expenses incurred by a business when it changes its prices, and a quintessential example of this is the cost of physically changing price tags in a store. In an economic context, menu costs are often associated with the idea that businesses may hold off on altering prices due to the costs and logistics involved in those changes.

When businesses update their pricing structures, they may need to print new menus, labels, or tags, which involves both direct costs (like printing expenses) and indirect costs (such as customer confusion and loss of sales during the transition). Thus, the correct answer highlights the tangible, physical aspect of changing prices, which is central to the concept of menu costs.

While other options involve costs related to pricing in certain ways—such as switching suppliers or making marketing adjustments—they do not capture the core definition of menu costs regarding the specific physical act of updating prices.