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David and Gary are students at Berkeley College. They share an apartment that is owned by Gary. Gary is considering subscribing to an Internet rovider
David and Gary are students at Berkeley College. They share an apartment that is owned by Gary. Gary is considering subscribing to an Internet rovider that has the following packages available: David spends most of his time on the Internet ("everything can be found online now"). Gary prefers to spend his time talking on the phone rather than using the Internet ("going online is a waste of time"). They agree that the purchase of the $90 total package is a "win-win" situation. Requirements 1. Allocate the $90 between David and Gary 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
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