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Consider the Following Prices from a McDonald's Restaurant: a McDonald's

Question 105

Multiple Choice

Consider the following prices from a McDonald's Restaurant: 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 fries. Assuming that there is a competitive market for McDonald's food items, at what price must a Big Mac value meal sell to insure the absence of an arbitrage opportunity and uphold the Law of One Price? A) $4.08 B) $4.62 C) $5.44 D) $6.80 A McDonald's Big Mac value meal consists of a Big Mac sandwich, large Coke, and a large fries. Assuming that there is a competitive market for McDonald's food items, at what price must a Big Mac value meal sell to insure the absence of an arbitrage opportunity and uphold the Law of One Price?


A) $4.08
B) $4.62
C) $5.44
D) $6.80

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