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Please answer correct explain plz asap plz In the example discussed in the textbook where Bruno (the landlord) and Angela (the farmer) must both voluntarily
Please answer correct explain plz asap plz
In the example discussed in the textbook where Bruno (the landlord) and Angela (the farmer) must both voluntarily agree to an exchange between them: Angela's bargaining power decreases when there are many other farmers looking for land to use. ' If Angela has no reservation option. she will get a better offer from Bruno. The reservation option gives Angela a greater power to reject Bruno's offer. If she has no reservation option, she may have to take Bruno's offer in order to not starve. The economically feasible set is larger than the technically feasible set. Angela will work more hours than when she was Bruno's slave. because she gets to keep a larger portion of the grain she produces under voluntary exchangeStep by Step Solution
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