A company wishes to borrow $10,000 but to efficiently monitor that loan each lender will incur costs of $100.What is the difference in monitoring costs per lender (as a percentage of loan value) between the firm borrowing all the money from one lender and splitting the loan between ten lenders
A) 0%
B) 1%
C) 5%
D) 9%
E) 10%

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The Answer of A company wishes to borrow $10,000 but to efficiently monitor that loan each lender will incur costs of $100.What is the difference in monitoring costs per lender (as a percentage of loan value) between the firm borrowing all the money from one lender and splitting the loan between ten lenders
A) 0%
B) 1%
C) 5%
D) 9%
E) 10%

A Company Wishes to Borrow $10,000 but to Efficiently Monitor