Consider the Following Prices from a McDonald's Restaurant

question 86

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. Assume that there is a competitive market for McDonald's food items and that McDonald's sells the Big Mac value meal for $4.59. 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 $0.67.
• 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 $1.34.
• D) Yes, buy a Big Mac, Coke, and fries, then sell a value meal to make arbitrage profit of $0.67.

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Definitions:

Positive Feedback

Encouraging or affirmative information provided in response to an action or behavior, intended to reinforce and promote repetition of the behavior.

Systemic Approaches

Strategies or methods that consider the complex interrelationships within systems, such as in families, organizations, or ecosystems, to address issues or implement changes.

Individual's Symptoms

Manifestations of disease or disorders experienced by a person, often indicating the presence of a health issue.

Cross-Generational Coalition

A problematic alliance formed between a member of one generation and another, bypassing the hierarchical boundary in a family system, often contributing to dysfunctional family dynamics.