Use the Table for the Question(s)below

question 59

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, a large Coke and a large fries. 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)$5.47
• B)$5.17
• C)$5.37
• D)$5.072

---

Definitions:

Public Trust

The degree of confidence that the public has in the capability, integrity, and efficiency of organizations, institutions, or government to fulfill their responsibilities.

Well Informed

Having or showing a broad knowledge of facts acquired through education or experience.

Do No Harm Principle

A guiding ethical imperative aimed at avoiding the infliction of harm or suffering on others.

Liberty

The state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.