Adjustment costs

Adjustment Costs
Definition of adjustment costs: This is the cost to a firm of altering its level of output.

Adjustment Costs. The economic and social costs of reallocating resources from .domestic industries forced to contract as a result of international competition.

The benefits of increased trade to an importing country generally exceed the costs of adjustment, but the benefits are widely shared and the adjustment costs are sometimes narrowly - and some would say unfairly - concentrated on a few domestic ...

Moreover, in resetting their prices, firms are subject to frictions of some kind (either in the form of constraints on the frequency of adjustment or of adjustment costs), ...

See also: Monopoly, Free trade, Procurement, Barriers, Balance of payments