Trio Company sells three products, Alpha, Beta, and Gamma, for prices of $8. $5, respectively. They also offer combinations of the products for reduced ow prices. The following packages are available: (1) a package containing Alpha a sells for $13.50, (2) a package of Alpha and Gamma sells for $11.50, (3) a pac containing Beta and Gamma sells for $10.50, and (4) a package of all three pr- Alpha, Beta, and Gamma, sells for $17.00. If Trio Company uses the Shapley value method, the amount of revenues from bundled package of all three products to be allocated to Beta would be

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Trio Company sells three products, Alpha, Beta, and Gamma, for prices of $8, $7, and
$5, respectively. They also offer combinations of the products for reduced overall
prices. The following packages are available: (1) a package containing Alpha and Beta
sells for $13.50, (2) a package of Alpha and Gamma sells for $11.50, (3) a package
containing Beta and Gamma sells for $10.50, and (4) a package of all three products,
Alpha, Beta, and Gamma, sells for $17.00.
If Trio Company uses the Shapley value method, the amount of revenues from a
bundled package of all three products to be allocated to Beta would be
$7.00
$4.00
$5.00
$5.95
$6.00
Transcribed Image Text:Trio Company sells three products, Alpha, Beta, and Gamma, for prices of $8, $7, and $5, respectively. They also offer combinations of the products for reduced overall prices. The following packages are available: (1) a package containing Alpha and Beta sells for $13.50, (2) a package of Alpha and Gamma sells for $11.50, (3) a package containing Beta and Gamma sells for $10.50, and (4) a package of all three products, Alpha, Beta, and Gamma, sells for $17.00. If Trio Company uses the Shapley value method, the amount of revenues from a bundled package of all three products to be allocated to Beta would be $7.00 $4.00 $5.00 $5.95 $6.00
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