Use the Table for the Question(s) Below

question 15

Multiple Choice

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

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Definitions:

Coelomic Cavity

The Coelomic Cavity is a fluid-filled body cavity within organisms that is lined by a tissue derived from mesoderm, providing space for the internal organs and allowing them to move independently.

Cloacal

Relating to the cloaca, a common cavity at the end of the digestive tract for the release of both excretory and genital products in vertebrates such as birds, reptiles, amphibians, and some fish.

Early Digestive Tract

Refers to the initial sections of the digestive system where the breakdown of food begins, including the mouth, esophagus, and stomach.

Evaginations

The process of forming an outpouching or protrusion of a structure or tissue.