B1 and B2 Are Equal Shareholders in the Company Banana

question 20

Not Answered

B1 and B2 are equal shareholders in the company Banana Inc.They have each invested $200 in the company.The following graph shows on a per shareholder basis the production possibilities curve,B1 and B2's indifference curves and the market opportunity line.
(a)What is the interest rate?
(b)How much is invested by the company at the optimal point?
(c)Assuming that the company invests at the optimal point,complete the following table (where applicable)for shareholder B1. (d)Assuming that the company invests at the optimal point,complete the following table (where applicable)for B2.

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