ED (OUP-Ut()-Ql()) The diagram depicts Marco's choice of consumptions in periods I and 2. He has $100 worth of grain in period l and no income in period 2. Marco has two choices. ln scheme 1. he can store the grain that he does not consume in period 1. This results in a loss of 20% of the grain due to pests and rotting. ln scheme 2, he can sell the grain that he does not consume and lend the money at l0%. Which of the following statements is correct? FFlstore grain; 20% losses) FF [lend at10%) 65 68 Consumption now, 5 (A) I 01 is Marco's reservation indifference curve. (B) Storing some of the grain is benecial for Marco, despite the loss due to pests and rotting. (C) At A, Marco loses $26 worth of grain to pests and rotting. 28