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Steve and Evan are students at Berkeley College. They share an apartment that is owned by Evan. Evan is considering subscribing to an Internet
Steve and Evan are students at Berkeley College. They share an apartment that is owned by Evan. Evan is considering subscribing to an Internet provider that has the following packages available: Package A. Internet access Per Month C. Internet access + phone services 80 20 90 B. Phone services Steve spends most of his time on the Internet ("everything can be found online now"). Evan 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 Steve and Evan using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. Which method would you recommend they use and why? Requirement 1. Allocate the $90 between Steve 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.) (a) Stand-alone (b) Incremental Steve primary user Evan primary user (c) Shapley Costs allocated to Steve Evan
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