3 ms·
I meant more on the production side. Like how much labor and raw material is required to make a Big Mac. But I guess if you consider the price relative to typi
by bko 5y ago
I meant more on the production side. Like how much labor and raw material is required to make a Big Mac.
But I guess if you consider the price relative to typical wages then it should give you a similar effect, although it would ignore the advancements in capital productivity which may not be reflected in wage data.
- Moru 5y agoIf there are improvements on the cost of material the profit margin for the restaurant gets bigger. The price to customer stays the same.
- eru 5y agoThat's an interesting perspective? Advances is capital productivity usually drive wages higher pretty soon, no? In any case, I just brought up this 'minutes of labour for one Big Mac' index, because I remembered that some people had already done the numbers and it seemed somewhat relevant to your question. I have no clue whether it's the best index anyone could come up with.