If you wanted to buy a McDonald's Big Mac, medium fries, and a medium drink separately, it will cost you $8.27. However, if you purchased these three items together as part of the firm's Extra Value Meal package, you would pay only $5.69, saving $2.58. This Extra Value Meal price serves as __________ to you and other consumers, who compare the costs and benefits of substitute items to a bundle containing those items.
A)a marginal analysis
B)a profit equation
C)a reference value
D)a break-even analysis
E)price elasticity of demand

Question

Quizplus · Accepted Answer

The Extra Value Meal price serves as a reference value to consumers who compare the costs and benefits of substitute items to a bundle containing those items. This means that consumers perceive the Extra Value Meal price as a benchmark or standard price, against which they evaluate the relative value of other options. Therefore, the Extra Value Meal price acts as a reference point that influences consumers' perceptions of value and affects their decision-making process. The other options listed do not accurately describe the role of the Extra Value Meal price in this context.

If You Wanted to Buy a McDonald's Big Mac, Medium