If you wanted to buy a McDonald's Big Mac, small fries, and a small drink separately, it will you cost you $6.19. However, if you purchased these three items together as part of the firm's Extra Value Meal package, you would pay only $4.39, savings 80 cents. 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.

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Quizplus · Accepted Answer

The "Extra Value Meal" price serves as a reference value for consumers to compare the costs and benefits of substitute items to a bundle containing those items. This is because the price of the bundle creates a perception of value and savings, which attracts consumers to purchase it instead of buying the items separately. Therefore, this reference value can influence consumer behavior and purchasing decisions.

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