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1 The figure below shows supply and demand for honeybee hives, based on private costs and benets. 6) 2 Price ($) points eBook 450 Prim

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1 The figure below shows supply and demand for honeybee hives, based on private costs and benets. 6) 2 Price ($) points eBook 450 Prim 300 O 1.00 2.00 3.00 4.00 5.00 6.00 Beehives (millions) Bees produce benefits notjust for the beekeeper but also for surrounding farms through pollination. Suppose that the external benefit is $100 per beehive. a. Ignoring the positive externality, there will be million beehives, and this is million beehive v [Click to select} too many:r too few b. The deadweight loss to society when suppliers are unable to capture the $100 external benet is E million c. The deadweight loss could be eliminated if the government imposed a of $ per beehive

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