Short Answer

Determining Income Equality Point

In an economic model with one lender and five borrowers, the lender's income is determined by collecting a share, s, from each of the five borrowers' businesses, resulting in a total income of 5s. Each borrower's income is the remaining portion, 1-s. At what specific value of the share s would the lender's total income be exactly equal to the income of a single borrower? Show your calculation.

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Updated 2025-08-02

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