• A beekeeper lives adjacent to an apple orchard. • The orchard owner benefits from the bees because each hive pollinates about one acre of apple trees. • The orchard owner pays nothing for this service, however, because the bees come to the orchard without his having to do anything. • Because there are not enough bees to pollinate the entire orchard, the orchard owner must complete the pollination by artificial means:
• A beekeeper lives adjacent to an apple orchard. • The orchard owner benefits from the bees because each hive pollinates about one acre of apple trees. • The orchard owner pays nothing for this service, however, because the bees come to the orchard without his having to do anything. • Because there are not enough bees to pollinate the entire orchard, the orchard owner must complete the pollination by artificial means:
Chapter14: Environmental Economics
Section: Chapter Questions
Problem 7SQ
Related questions
Question
100%
![BN11.2 (a) (b) (c)
Case:
• A beekeeper lives adjacent to an apple orchard.
• The orchard owner benefits from the bees because each hive pollinates about
one acre of apple trees.
• The orchard owner pays nothing for this service, however, because the bees
come to the orchard without his having to do anything.
• Because there are not enough bees to pollinate the entire orchard, the orchard
owner must complete the pollination by artificial means:
o At a cost of $10 per acre of trees
o Beekeeping has a marginal cost MC = 10 + 50,
▪ where Q is the number of beehives.
o Each hive yields $40 worth of honey.
Questions:
(a) How many beehives will the beekeeper choose to maintain?
(b) Is this the economically efficient number of hives from the societal point
of view?
(c) What could the orchard owner and/or the beekeeper do to produce a more
efficient operation?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6274a625-9a74-4008-b392-f1961eea52c4%2F2e9dea57-71dd-4eda-a935-a431e4b781af%2F8yp1of_processed.jpeg&w=3840&q=75)
Transcribed Image Text:BN11.2 (a) (b) (c)
Case:
• A beekeeper lives adjacent to an apple orchard.
• The orchard owner benefits from the bees because each hive pollinates about
one acre of apple trees.
• The orchard owner pays nothing for this service, however, because the bees
come to the orchard without his having to do anything.
• Because there are not enough bees to pollinate the entire orchard, the orchard
owner must complete the pollination by artificial means:
o At a cost of $10 per acre of trees
o Beekeeping has a marginal cost MC = 10 + 50,
▪ where Q is the number of beehives.
o Each hive yields $40 worth of honey.
Questions:
(a) How many beehives will the beekeeper choose to maintain?
(b) Is this the economically efficient number of hives from the societal point
of view?
(c) What could the orchard owner and/or the beekeeper do to produce a more
efficient operation?
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