Consider the diagram below. Legislation allows Angela, a farmer, to be at point F.

If
Angela, a farmer, and Bruno, her landlord, can
bargain costlessly:

Question

Consider the diagram below. Legislation allows Angela, a farmer, to be at point F.

If
Angela, a farmer, and  Bruno, her landlord, can
bargain costlessly:

Answer

The
final outcome will be somewhere between (or at) points C and I.

Answer

The
final outcome will be unchanged.

Answer

The
final outcome could be anywhere on the "contract curve" of Pareto-efficient
points between C and D.

Answer

The
final outcome will be a Pareto improvement.

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