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Use the Table for the Question(s)below

question 66

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Use the table for the question(s) below.
Consider the following prices from a McDonald's Restaurant: 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
-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?


Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production process, used in costing and pricing decisions.

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