you wanted to buy a McDonald's Big Mac,small fries,and a small drink separately,it 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¢.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 for consumers who may compare the costs and benefits of buying the items separately or as part of the bundle. It is a standard price against which other prices are compared, making it a reference value. Marginal analysis, profit equation, and break-even analysis are methods used in analyzing costs and revenue for a particular product or service. Price elasticity of demand, on the other hand, measures the responsiveness of demand to changes in price.

You Wanted to Buy a McDonald's Big Mac,small Fries,and a Small