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Bob and Evan are students at Berkeley College They share an apartment that is Bob spends most o s imeonnheimem e m-an On mre owned
Bob and Evan are students at Berkeley College They share an apartment that is Bob spends most o s imeonnheimem e m-an On mre owned by Evan Evan is considering subscribing to an Internet provider that has now) Evan prefers to spend his time taking on the phone rather than using the the following packages available Package A. Internet access B. Phone services C. Internet access phone services Internet ('going online is a waste of time") They agree Ihat the purchase of the $70 total package is a "win-win" situation. Requirements 1. Allocate the $70 between Bob and Evan using (a) the stand-alone cost Per Month S 60 allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method Which method would you recommend they use and why? 20 70 2. Requirement 1. Allocate the $70 between Bob and Evan 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 Bob Evan (a) Stand-alone (b) Incremental Bob primary user Evan primary user (c) Shapley Requirement 2. Which method would you recommend they use and why? I would recommend the Enter any number in the edit fieids and then continue to the next question. Bob and Evan are students at Berkeley College They share an apartment that is the tedowran Cvan coblubserbing to an internet provider that has Bob spends most of his time on the Internet (Ceverything can be found online notwen Evan preters to spond his time taking on the phone rathar than using the Package A. Internet access B. Phone services C. Internet access + phone services Internet ('going online is a waste of time) They agree that the purchase of $70 total package is a "win-win" situation Requirements 1. Allocate the $70 between Bob and Evan using (a) the stand-alone cost- Per Month S 60 20 70 allocation method, (b) the incremental cost-alocation method, and (c) the Shapley value method 2. Which method would yau recommend they use and why? Bob Evan (a) Stand-alone (b) Incremental Bob primary user Evan primary user (C) Shapley Requirement 2. Which method would you recommend they use and why? I would recommend the It is fairer than the close to the costs allocated under the which It allocates costs in a manner that is but takes a more comprehensive view of the common cost allocation problem by considering Enter any number in the edit fields and then continue to the next
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