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. 
Definitions:
Conservatism
An accounting principle that mandates recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but only recognizing revenues and assets when they are assured of being received.
Patent Amortization Expense
The gradual expensing of the cost associated with a patent over its useful life, reflecting the consumption of the patent's value.
Infringement
The action of violating a law, agreement, or the rights of another, especially intellectual property rights.
Legal Costs
Expenses incurred due to legal services, which may include lawyer fees, court fees, and other related costs.
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