A McDonald's Big Mac Value Meal Consists of a Big

question 56

Multiple Choice

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 extra value meal?

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

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Definitions:

Trait Theories

Theories in psychology that focus on identifying, describing, and measuring individual differences in behavioral predispositions.

Self-Actualization

The act of reaching or fulfilling one's own capabilities and talents, perceived as an inherent desire or requirement in everyone.

Unconscious Motives

Unconscious motives refer to hidden and automatic drivers of behavior that are not accessible to an individual's conscious awareness.

Typical Behavior

Typical behavior refers to actions or reactions that are considered normal or expected in a given context, based on societal standards or norms.