Suppose a bank is faced with two types of borrowers - a highriskborrower that should be charged an interest rate of 9% and a low riskborrower that should be charged an interest rate of 4%. Thereis a 30%chance of getting a high risk borrower and a 70% chance of getting alow risk one. What is the expected interest rate that will be chargedby a bank that cannot exactly distinguish between the two types butknows the probabilities of each type. In this market for loans whatwould be the result.

Until recently, hamburgers at the city sports arena cost $4.70 each. the food concessionaire sold an average of 13 comma 000 hamburgers on game night. when the price was raised to $5.40, hamburger sales dropped off to an average of 6 comma 000 per night. (a) assuming a linear demand curve, find the price of a hamburger that will maximize the nightly hamburger revenue. (b) if the concessionaire had fixed costs of $1 comma 500 per night and the variable cost is $0.60 per hamburger, find the price of a hamburger that will maximize the nightly hamburger profit.