Assume Bruno is a landowner and Angela is the farmer working on his land.
(a) UsingAngelaandBruno’sfeasiblefrontierandAngela’sbiologicalconstraint,illustrateandclearlylabelthe technically feasible set. What allocation point is likely to be chosen by Bruno under coercion and why?
(b) OnanewdiagramillustratetheallocationchosenifthereisbargainingbetweenAngelaandBruno.Explain whether Angela receives a larger share of economic rent as a result of bargaining?
(c) Onyourdiagramfrompart(b)clearlyindicatetheallocationthatAngelawouldreceiveifshewastheowner working on her own land. Is there any difference in Angela’s working hours and economic rent that she would receive if she was the owner, as compared to bargaining?
