Which of the following statements is correct based on the provided graph?

Steps to Solve

1. Identify Key Terms The question includes concepts like the feasible frontier, biological survival constraint, and reservation indifference curve. These help in understanding limits on Angela's decision-making in relation to time and grain.

2. Analyze the Graph The graph shows:

   • Angela's biological survival constraint (a horizontal line at 2.5 bushels).
   • Angela's reservation indifference curve (which generally lies above her survival constraint).
   • The feasible frontier (the area showing combinations of grain output and free time).

3. Interpret the Options Review the statements:

   • (a) compares economically feasible set to technically feasible set.
   • (b) discusses marginal rates of substitution.
   • (c) mentions the possibility of some points being feasible but not technically feasible.
   • (d) examines how a change in ration affects the suggestion in the graph.

4. Evaluate Each Statement

   • (a) This is incorrect because the economically feasible set should indeed be a subset of the technically feasible set.
   • (b) This can be true: the rate of substitution will differ in various parts of the graph.
   • (c) Some points could indeed be economically feasible but not satisfy both constraints simultaneously. This could be true depending on the context.
   • (d) This could also be true; as the ration increases, the indifference curve can elevate over the biological constraint.

5. Identify the Correct Statement After analyzing the statements and understanding their implications in relation to the graph, determine which is correct based on the graphical relationships displayed.