McDonald is famous for the Extra Value Meal, a form of mixed bundling with a leader combined with large French Fries and medium soft drink. The following table gives you the Bundled Price and the Separate Price.
SEPERATE PRICE | NON BUNDLED PRICE | BUNDLED PRICE | |
---|---|---|---|
Large French Fries | 1.39 | ||
Medium Soft Drink | 1.09 | ||
McGrill Chicken Sandwich | 2.69 |
2.69 + 1.09 + 1.39 = 5.17 |
4.29 |
McChicken Sandwich | 1.00 | 3.48 | 3.39 |
Double Cheeseburge | 1.00 | 3.48 | 3.39 |
Quarter Pounder | 2.19 | 4.67 | 3.79 |
Is this direct or indirect price discrimination? Explain.
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