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Author Question: Use the table for the question(s) below.Consider the following prices from a McDonald's ... (Read 94 times)

jilianpiloj

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Use the table for the question(s) below.

Consider the following prices from a McDonald's Restaurant:

Big Mac Sandwich$2.99
Large Coke$1.39
Large Fry$1.09


A McDonald's Big Mac value meal consists of a Big Mac sandwich, large Coke, and a large fry.  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?
◦ $4.08
◦ $4.38
◦ $5.47
◦ $5.77


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Marked as best answer by jilianpiloj on Jul 9, 2019

chjcharjto14

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