Alice Keeps a Bee Farm Next to an Apple Orchard

question 260

Multiple Choice

Alice keeps a bee farm next to an apple orchard. She chooses the optimal number of hives by selecting the honey output level that maximizes her profit. Alice's bees help to pollinate the blossoms in the apple orchard next to her, increasing the fruit yield. This situation is an example of

• A) asymmetric information.
• B) the nature of public goods.
• C) an external cost.
• D) an external benefit.

---

Definitions:

Problem And Solution

A method of structuring text or presentations by identifying an issue and proposing one or more ways to resolve it.

Cause And Effect

A connection in which one occurrence (the cause) leads to the occurrence of another (the effect).

Mobile Readers

Devices or software applications designed for reading digital content on mobile phones and tablets.

Transitional Paragraphs

Paragraphs in a written document that help to smoothly connect different sections or ideas, facilitating a coherent flow.