Amanda keeps bees to produce honey. Each hive produces $350 worth of honey each month. The...
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Amanda keeps bees to produce honey. Each hive produces $350 worth of honey each month. The table below shows Amanda's marginal cost of tending each bee hive and her private marginal benefit, which is equal to the market value of the honey each hive produces. Marginal Cost and Marginal Benefit Quantity (hives) 1 2 3 4 5 MCprivate MB private $50 $350 150 250 350 450 350 350 350 350 MB external $ MB Social $ Instructions: Enter your answers as a whole number. a. What is the optimal number of hives for Amanda to tend? hive(s) Now suppose that each of Amanda's bee hives also provides pollination services to surrounding farms and that these services are worth $100 per hive per month. b. Fill in the external marginal benefit (MB external) and the social marginal benefit (MB social columns in the table above. c. What is the socially efficient number of hives for Amanda to tend if all costs and benefits are considered? ] hive(s) Amanda keeps bees to produce honey. Each hive produces $350 worth of honey each month. The table below shows Amanda's marginal cost of tending each bee hive and her private marginal benefit, which is equal to the market value of the honey each hive produces. Marginal Cost and Marginal Benefit Quantity (hives) 1 2 3 4 5 MCprivate MB private $50 $350 150 250 350 450 350 350 350 350 MB external $ MB Social $ Instructions: Enter your answers as a whole number. a. What is the optimal number of hives for Amanda to tend? hive(s) Now suppose that each of Amanda's bee hives also provides pollination services to surrounding farms and that these services are worth $100 per hive per month. b. Fill in the external marginal benefit (MB external) and the social marginal benefit (MB social columns in the table above. c. What is the socially efficient number of hives for Amanda to tend if all costs and benefits are considered? ] hive(s)
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Quantity 1 2 3 4 5 MC private 50 150 250 350 450 MB pri... View the full answer
Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
Posted Date:
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