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, at a cost of $10 per acre of trees. Beekeeping has a marginal cost
MC = 10 + 5Q
where Q is the number of beehives. Each hive yields £50 worth of honey.
A) Assuming the beekeeper wishes to maxmise his profits, how many beehives will the beekeeper maintain?
B) What is the socially effiecient number of hives?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A beekeeper lives adjacent to an apple orchard. The orchard owner benefits from the bees because each hive pollinates about one acre of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which one of the following factors is the least reliable for identification purposes? a. the scent of gasoline b. the color of a car c. a man with a beard d the sound of a scream
Answers (1)
At the beginning of the year, manufacturing overhead for the year was estimated to be $1,052,700. At the end of the year, actual direct labor-hours for the year were 36,400 hours, the actual manufacturing overhead for the year was $990,000, and
Answers (1)
Under what circumstances might the autocratic style of management be necessary?
Answers (1)
What must be on board and available for inspection by enforcement officers whenever a vessel is being operated?
Answers (1)
Beachside Co. sells two products, Skis and Snorkels. Last year Beachside sold 12,600 units of Skis and 23,400 units of Snorkels.
Answers (1)
New Questions in Business
You manage a portfolio worth $13.8 million, currently all invested in equities, and believe that the market is on the verge of a big but short-lived downturn.
Answers (1)
Assignable causes: A) are not as important as natural causes. B) are within the limits of a control chart. C) depend on the inspector assigned to the job. D) are also referred to as "chance" causes.
Answers (1)
Madison's gross tax liability is $9,000. Madison had $3,000 of tax credits available and she had $8,000 of taxes withheld by her employer. What is Madison's taxes due (or taxes refunded) with her tax return? $0 taxes due and $0 tax refund.
Answers (1)
In perfect competition A. the market demand curve and the individual's demand curve are identical. B. the market demand curve is perfectly inelastic while demand for an individual seller's product is perfectly elastic. C.
Answers (1)
With regard to how people use time and their expectations of how it should be managed, members of which type of culture value efficiency production and fast results?
Answers (1)