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

Question

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

Quizplus · Accepted Answer

C)2.99 + 1.39 + 1.09 = 5.47

Use the Table for the Question(s)below