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Ben and Ed are students at Berkeley College. They share an apartment that is owned by Ed. Ed is considering subscribing to an Internet provider
Ben and Ed are students at Berkeley College. They share an apartment that is owned by Ed. Ed is considering subscribing to an Internet provider that has the following packages available: Package Per Month A. Internet access S 60 B. Phone services 15 C. Internet access + phone services 70 Ben spends most of his time on the Intemet ("everything can be found online now"). Ed prefers to spend his time talking on the phone rather than using the Intemet ("going online is a waste of time"). They agree that the purchase of the $70 total package is a win-win situation. Requirements 1. Allocate the $70 between Ben and Ed using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. 2. Which method would you recommend they use and why? CHINES Requirement 1. Allocate the $70 between Ben and Ed using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. (Round your answers to the nearest cent.) Costs allocated to Ben Ed (a) Stand-alone (b) Incremental Ben primary user Ed primary user (c) Shapley Requirement 2. Which method would you recommend they use and why? I would recommend the It is fairer than the which . It allocates costs in a manner that is close to the costs allocated under the but takes a more comprehensive view of the common cost allocation problem by considering
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