What is the value of the externality

Assignment Help Macroeconomics

Reference no: EM13178572

A beekeeper, Yung, lives next to an apple orchard. She is not only benefits from the bees' honey, which she sells, but she sells, but she also creates a positive externality for her apple grower neighbor: Yung's bees help pollinate the apple trees so the apple grower can grow more apples. Yung's total cost and benefit for keeping her bees is the following:

Price per 1000 bees 27 24 23 21 18 15 12

Quantity of bees demanded 1 2 3 4 5 6 7

Quantity of bees supplied 9 8 7 6 5 4 3

Ignoring the externality, how many bees will be kept?

If the apple grower wants to see 6,000 bees kept, what is the value of the externality? What would have to happen for the socially optimal amount of bees to be kept?

Reference no: EM13178572

Questions Cloud

Find the interest and the maturity level : Jose borrowed $12,000 for 140 days at 10 1/2% to add a hot tub and enclosure to his home. Find the interest and the maturity level.

The calorimeter in computing the enthalpy of reaction : the heat capacity for the heat capacity of the calorimeter in calculating the enthalpy of reaction. What effect would ignoring this have on the calculation?

Disaster preparedness campaign targeting low-income latino : The article Developing a Disaster Preparedness Campaign Targeting Low-Income Latino Immigrants: Focus Group Results for Project PREP utilizes focus groups to conduct research.

Find the difference in the interest charges : He plans to pay the loan back in full in 5 months using his income tax refund. He can go to a finance company that will charge him 18% or to his uncle, who has greed to charge him 9%. Find the difference in the interest charges.

What is the value of the externality : If the apple grower wants to see 6,000 bees kept, what is the value of the externality? What would have to happen for the socially optimal amount of bees to be kept?

Depict structure of the gamma lactone formed from galactose : In acidic solution an aldonic acid is converted to a gamma lactone. Draw the structure of the gamma lactone formed from galactose, and draw a mechanism for its formation.

Find the demand function : A baseball team plays in a stadium that holds 59000 spectators. With ticket prices at $10, the average attendance had been 5000. When ticket prices were lowered to $8, the average attendance rose to 15000.

Write d in terms of a and s : The sail area-displacement ratio S provides a measure of the sail power available to drive a boat. For a boat with a displacement of d pounds and a sail area of A Tartan 4100, which has a sail area of 810 square feet and a displacement of 23,245 p..

Human and animal communication : In the left hand column are some human linguistic expressions. On the right are some animals, who have their own communicative expressions. Click on the controllers under the pictures to hear the animal expressions.

User Account

All Pages