Graph 10-3 This Graph Reflects the Market for Kiwifruit

question 135

Multiple Choice

Graph 10-3 This graph reflects the market for kiwifruit, where pesticide used by kiwifruit orchardists also unintentionally kills honey bees.
-Refer to Graph 10-3.The difference between the social cost curve and the supply curve reflects the:

• A)profit margin of each kiwifruit tray
• B)cost of spillover effects from the kiwifruit orchards (replacing bees, lost honey output)
• C)value of kiwifruit to society as a whole
• D)amount by which the government should subsidise the kiwifruit orchardists