Question 2 [12 marks] Assume Angela owns a Farm. Her feasible frontier for production and her indifference curves (based on a quasilinear utility function) are presented below. 12 MRS - MRT 7.5 Angela's indifference curves Bushels of grain Z Angela's feasible frontier 12 16 20 22 24 Angela's hours of free time a. Is the Marginal Rate of Substitution (MRS) higher at point H or C? Why? [2 marks] b. Is allocation D Pareto Efficient? Why? [2 marks] c. What is the optimal amount of time Angela will spend on production of grain? Why? [2 marks] d. Assume now that Bruno owns the farm, and Angela is a farmer willing to rent the farm. Point Z reflects Angela's Reservation Point. Discuss why allocation Z is not Pareto Efficient. What is the optimal amount of time Angela will spend on production of grain? Why? [2 marks] e. Assuming scenario (d) above. How much grain do Angela and Bruno each get to consume in the final equilibrium? Explain. [2 marks] f. Assume Bruno has coercive control over Angela. How will the equilibrium outcome differ from voluntary exchange, and from the outcome if Angelo owns the farm? [2 marks]