# 6. Phoebe keeps a bee farm next door to an apple orchard.She chooses her optimal number of beehives by select-ing the honey output level at which her private marginalbenefit from beekeeping equals her private marginalThe villaanotherа. If eachowandcost. (LO3)Assume that Phoebe's private marginal benefit andmarginal cost curves from beekeeping are normallyshaped. Draw a diagram of them.b. Phoebe's bees help to pollinate the blossoms in theapple orchard, increasing the fruit yield. Show thesocial marginal benefit from Phoebe's beekeeping inb.WhatvillagWhanumc. ThegrazAss15your diagram.c. Phoebe's bees are Africanized killer bees that aggres-sellsively sting anyone who steps into their flight path.Phoebe, fortunately, is naturally immune to the bees'venom. Show the social marginal cost curve fromPhoebe's beekeeping in your diagram.d.Indicate the socially optimal quantity of beehives onyour diagram. Is it higher or lower than the privatelyoptimal quantity? Explain.righ9. Two fаccesshas apollutresposhowdio rentals in

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6a, 6b, 6c, 6d

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Step 1

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To calculate the optimal number of beehives.

Step 2

(a) The equilibrium price and quantity can be determined by the intersection of the private marginal cost and the private marginal benefit. Since no external cost or benefit is allowed, the equilibrium price and equilibrium quantity is socially optimal. The diagram is given below:

Step 3

(b) Since bees help to increase the fruit yield by pollinating the blossoms at aple orchard, there is positive externalit...

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