Multiple Choice

An economic model consists of one lender and five borrowers. Borrower A's business has annual revenues of $300,000 and costs of $150,000. Borrower B's business has annual revenues of $250,000 and costs of $100,000. Crucially, both businesses generate an identical net income. The lender receives the same fractional share of this net income from every borrower, and each borrower retains the rest. Based on this information, what is the difference between the final income of Borrower A and the final income of Borrower B?

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Updated 2025-09-26

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