Question

Bob and Tom are graduating and are no longer going to be roommates, but they both want to keep the cat they adopted. Using the Method of Sealed Bids, Bob bids $34 and Tom bids $73 for the cat. Since Tom's bid is higher, he gets the cat. How much will he have to pay Bob in order to keep the division fair? Be sure to compute your answer to the nearest

Answer 1

To ensure a fair division, Tom will have to pay Bob $39.50. This can be calculated using the formula (Bob's Bid + Tom's Bid)/2 = Fair Division. In this case, the formula would be (34 + 73)/2 = 39.50. Therefore, Tom will have to pay Bob $39.50 in order to keep the division fair.