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Problem 2C: Bruno is a landowner and Angela is a farmer who pays a share of her grain output to Bruno for the use of

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Problem 2C: Bruno is a landowner and Angela is a farmer who pays a share of her grain output to Bruno for the use of the land. The figure shows Angela and Bruno's feasible frontier, Angela's biological survival constraint, and her reservation indifference curve with a few new points. Angela's biological survival constraint Angela's reservation 12- E indifference curve C 9- Bushels of grain D Feasible frontier: Angela .5 and Bruno combined What Angela gets, 0 3 13 16 24 Angela's hours of free time Based on the figure, which of the following statements is correct? In a voluntary exchange where Bruno has all the bargaining power, B is the best choice for Bruno as it maximises his rent. If Bruno can use coercion then he would force Angela to work 21 hours to maximise total production. If Angela owned the land instead, then she would choose A, where her rent is maximised. In a voluntary exchange where Bruno has all the bargaining power, if Bruno charges 4.5 bushels of rent for the use of his land then Angela would choose to work 8 hours

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