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The Marginal Cost of the McRib

Photo: IRuocaled

McDonald’s has reintroduced its McRib sandwich. Consisting of meat that at one point belonged to a pig, it is now on yet another farewell tour, its sixth since 2004.  (Actually, the first three were called “Farewell Tour,” the last three have been called “Reintroduction.”) The website the Awl.com points out that the reintroductions of this unusual product have all coincided with downturns in the price of pork. 

Seems reasonable to me: Mickey D’s assumes there is some best price for the McRib and compares it to the marginal cost, exactly as in our introductory textbooks. When the marginal cost drops sufficiently (and presumably the price of pork is the most variable item in costs), back comes the McRib.  (HT to CVB)


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