The Price of a Big Mac in the U

question 61

Multiple Choice

The price of a Big Mac in the U.S. is $3.41 and the price in Mexico is Peso 29.0. What is the implied PPP of the Peso per dollar?

• A) Peso 8.50/$1
• B) Peso 10.8/$1
• C) Peso 11.76/$1
• D) None of the above

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Definitions:

Fixed Cost

A cost that remains constant, regardless of changes in the level of production or sales activities.

Factory Supervisor

An individual responsible for overseeing the production process and workers in a manufacturing setting.

Merchandising Company

A merchandising company is a business that purchases finished products and sells them to consumers, without altering the product's form.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.