Consider the Following Prices from a McDonald's Restaurant: a McDonald's

question 112

Multiple Choice

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 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) $4.08
• B) $4.62
• C) $5.44
• D) $6.80

---

Definitions:

Car Accident

A collision involving one or more vehicles, often resulting in property damage and personal injuries.

Unusually Anxious

Experiencing higher levels of anxiety than what is typically expected in a given situation or context, often needing clinical attention.

Acute Stress

An immediate and intense emotional and physical reaction to a demanding or threatening situation.

Psychological Symptoms

Manifestations of mental or emotional distress, such as anxiety, depression, or hallucinations.