Multiple Choice
Use the table for the question(s) below.
Consider the following prices from a McDonald's Restaurant:
-A McDonald's Big Mac value meal consists of a Big Mac sandwich,large Coke,and a large fry.Assuming that there is a competitive market for McDonald's food items,at what price must a Big Mac value meal sell to ensure the absence of an arbitrage opportunity and uphold the Law of One Price?
A) $4.08
B) $4.38
C) $5.47
D) $5.77
E) $5.00
Correct Answer:

Verified
Correct Answer:
Verified
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