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The McRib and Economic Calculation


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The McRib and Economic Calculation
  • McRib.jpg?itok=m-g_Mmx7
20 hours ago Jonathan Newman

Xanthe Pajarillo has petitioned her city council to somehow get the local McDonald's restaurants to offer the McRib sandwich. The McRib features ground pork shaped like four ribs and a McDonald's signature barbecue sauce. Some people love it. Others hate it.

 

Xanthe is in the "loves it" crowd. The sandwich is even a part of her family's Thanksgiving tradition. They order ten McRibs and a 50-piece Chicken McNugget every year.

 

Personal opinions about the sandwich aside, we can take Ms. Pajarillo's complaint as an opportunity to discuss why McDonald's offers the McRib sometimes but not all of the time, and in general, how entrepreneurs make production decisions for any good.

 

McDonald's historically reintroduces the McRib whenever pork prices fall below 65ish cents per pound. (The solid black lines below show when the McRib was reintroduced.) Scissors-32x32.png

 

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