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 insure 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 insure 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