Problem

Ms. Latte and Ms. Mocha decide to go their separate ways, but must determine how to divi...

Ms. Latte and Ms. Mocha decide to go their separate ways, but must determine how to divide the drive-thru espresso hut they own together. Both would like to keep the business going, but they no longer want to work together. Ms. Latte thinks the business is worth $18,500, while Ms. Mocha thinks it is worth $20,200. They will settle this dispute using the method of sealed bids to divide the business.

a. Who should keep the espresso business?

b. What should they consider the value of the espresso business to be?

c. What does Ms. Latte end up with, and why is she happy?

d. What does Ms. Mocha end up with, and why is she happy?

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Solutions For Problems in Chapter 4.2