The figure
below shows Angela and Bruno’s feasible frontier, Angela’s biological survival
constraint and her reservation indifference curve.

You are also given that the
total amount of grain produced is 8 bushels if Angela works for 8 hours and 10
bushels if she works for 11 hours. From this, we can conclude that:

Question

The figure
below shows Angela and Bruno’s feasible frontier, Angela’s biological survival
constraint and her reservation indifference curve.

You are also given that the
total amount of grain produced is 8 bushels if Angela works for 8 hours and 10
bushels if she works for 11 hours. From this, we can conclude that:

Answer

Bruno can claim an economic rent of 5 out of the total surplus of 6 under his best voluntary exchange outcome.

Answer

Angela will choose not to work if she is offered 2 bushels of grain for 16 hours of free time under voluntary exchange.

Answer

Bruno can increase his share by 2 bushels if he could coerce Angela to work 11 hours compared to under the voluntary exchange outcome.

Answer

Bruno can devise a take-it-or-leave-it offer under voluntary exchange such that he is just as well off as the best outcome under coercion.

Crowdly

The figure below shows Angela and Bruno’s feasible frontier, Angela’s biologi...

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