This paper analyzes the optimal adjustment strategy of an inventory-holding firm facing price- and quantity-adjustment costs in an inflationary environment. The model nests both the original menu-cost model that allows production to be costlessly adjusted, and the later model that includes...

This paper contains an analysis of the admission and tuition policy of a university that maximizes its utility, which depends on the aggregate value of its students and the endowment left for the future. Higher academic ability increases a student's value to the university, while higher tuition...