According to Steven Cheung: "Pollination Contracts Usually Include Stipulations Regarding

question 195

Multiple Choice

According to Steven Cheung: "Pollination contracts usually include stipulations regarding the number and strength of ...[bee] colonies, the rental fee per hive, the time of delivery...the protection of bees from pesticides, and the strategic placing of hives." Cheung cites this as evidence that

• A) the high costs of writing and enforcing complicated written agreements between owners of beehives and apple orchards prevents economic efficiency from being achieved in these markets.
• B) government intervention is not always necessary to bring about an economically efficient number of apple trees and beehives.
• C) government regulation of contracts between owners of beehives and apple orchards is necessary to bring about an economically efficient number of apple trees and beehives.
• D) the beekeeping and apple growing businesses have become more complicated and costly over time due to the legal costs involved.

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Definitions:

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output provided by all firms in the industry.

Chirimollas

A tropical fruit, also known as custard apple, valued for its sweet taste and nutritional properties, but unknown or incorrect as a key-term might imply "cherimoyas."

Demand Function

An equation that illustrates the quantity of an item that will be demanded at various prices, assuming all other factors remain constant.

Equilibrium Price

The market price at which the quantity of a good supplied is equal to the quantity demanded, resulting in market equilibrium.