A cheeseburger at McDonald's is 99 cents. A double cheeseburger is...100 cents. I can't figure out how this is economically advantageous for McDonald's, and nor are any of my friend's explanations proving persuasive. Current theses:
- They're not undercharging for double cheeseburgers, they're overcharging for single cheeseburgers. They make their profit off folks who don't notice the double.
- People like feeling like they're getting a deal. This makes them feel that way.
- It's some sort of promotion.
- The marginal cost of producing the extra patty is so minor that a penny is actually a huge profit.
- I should stop thinking so much about fast food pricing schemes, particularly since I eat very little fast food.
Any better ideas?
