3 ms·
What it doesn’t mention is that a Big Mac is really a combination of a product (the price of which should be roughly constant) and the service of cooking and se
by tlb 7y ago
What it doesn’t mention is that a Big Mac is really a combination of a product (the price of which should be roughly constant) and the service of cooking and serving it (which is priced relative to local labor and real-estate rates).
If you look at the price of pure products, like barrels of oil, there is little Penn effect.
- gmueckl 7y agoNot true. The Big Mac is mostly sourced regionally. So the raw material prices also vary and factor in labor cost.
- Dylan16807 7y ago> The Big Mac is mostly sourced regionally. Only when it's cheaper to do so, and bulk shipping is pretty cheap. So the raw material prices have a cap on how much they can vary, while the location and service costs can have ridiculous differences.
- retrac 7y agoYou're assuming free trade, which is often not what actually exists. It's hard enough to get American beef approved to be sold in Canada, let alone ship it around the world.
- Dylan16807 7y agoYou could do extra certification or whatnot if it was going to save you more than a penny or two. Most trade is pretty free, even without all of it being so.