Angela's biological survival constraint Angela's reservation indifference curve 12 Bushels of grain 9 4.5 Feasible frontier: Angela and Bruno 0...
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Question

Angela is a farmer who works on Bruno's land. The diagram illustrates Angela and Bruno's combined feasible

frontier, Angela's biological survival constraint and Angela's reservation indifference curve. Which of the following statements about the decision made on Angela's free time and bushels of grain is incorrect?

q3.png


Select one:

a. If Bruno can enforce any allocation he wants, he will make Angela work for 8 hours.

b. If Bruno can enforce any allocation he wants, he will make Angela work for 11 hours.

c. If Angela can take or leave the allocation Bruno offers, Bruno gets 4.5 bushels of grain.

d. Total production of grain is lower if both parties bargain when compared to the case where Angela has no bargaining power.

e. If Bruno can enforce any allocation he wants, he will choose one that maximises what he gets.

q3.png

Angela's biological
survival constraint
Angela's reservation
indifference curve
12
Bushels of grain
9
4.5
Feasible frontier:
Angela and Bruno
0
combined
0
13 16
24
Angela's hours of free time
What Bruno gets
6
Technically feasible
4.5
Economically feasible
(joint surplus)
0-
13 16
24
Angela's hours of free time

Top Answer

a.If Bruno can enforce... View the full answer

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