Raven Farms Raises a Substantial Number of Bees and Uses

question 38

Multiple Choice

Raven Farms raises a substantial number of bees and uses the honey to produce its own skin healing cream. Raven Farms is situated next to the Oakcreek Apple Orchard. The bees from Raven Farms pollinate Oakcreek's apple trees. In this instance, Raven Farms

• A) derives more private benefits and provides less social benefit.
• B) provides more social benefits than it derives in private benefits.
• C) provides a marginal social benefit and derives a complete private benefit.
• D) provides a complete social benefit and derives a marginal private benefit.

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Definitions:

Earnings Per Share

A financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock, calculated as net income divided by the number of shares.

Net Income

A financial metric indicating the amount of revenue that remains as profit for a period after all expenses and taxes have been paid.

Common Stock

A form of investment indicating a stake in a corporation, which bestows upon its owners the right to vote and receive a portion of the company's earnings through dividends.

Net Cash

The amount of cash available after deducting cash outflows from cash inflows.