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¢.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 are comparing the costs and benefits of similar items. It provides a benchmark for consumers to evaluate whether the bundle is worth purchasing compared to buying the items separately. Therefore, the best choice is option C, a reference value.

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