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Steve and Ed are students at Berkeley College. They share an apartment that is Steve spends most of his time on the Internet (everything can
Steve and Ed are students at Berkeley College. They share an apartment that is Steve spends most of his time on the Internet ("everything can be found owned by Ed. Ed is considering subscribing to an Internet provider that has the online now"). Ed prefers to spend his time talking on the phone rather than following packages available: 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 Steve 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? Requirement 1. Allocate the $90 between Steve 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.) 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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