Use the Table for the Question(s)below

question 44

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.Assume that there is a competitive market for McDonald's food items and that McDonald's sells the Big Mac value meal for $4.79.Does an arbitrage opportunity exists and if so how would you exploit it and how much would you make on one value meal?

• A)Yes,buy a value meal and then sell the Big Mac,Coke,and fries to make arbitrage profit of $0.68.
• B)No,no arbitrage opportunity exists.
• C)Yes,buy a Big Mac,Coke,and fries,then sell a value meal to make arbitrage profit of $1.09.
• D)Yes,buy a Big Mac,Coke,and fries,then sell a value meal to make arbitrage profit of $0.68.

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Definitions:

4-methyl-1-pentanol

An organic compound and a type of alcohol, known for its application in solvents and intermediates in the synthesis of other compounds.

Major Organic Product

In organic chemistry reactions, this term specifies the predominant product formed from the reactants, accounting for the greatest yield among all products.

Major Organic Product

The principal substance formed with the most significant yield in an organic chemistry reaction.

Reaction

A process in which substances, called reactants, transform into different substances known as products.