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Please explain steps to your answer. thank you! The accompanying diagram shows the supply and demand diagrams private marginal cost and MB0 represents private marginal
Please explain steps to your answer. thank you!
The accompanying diagram shows the supply and demand diagrams private marginal cost and MB0 represents private marginal benefit. Assume there are two types of firms in this region-beekeepers that produce honey and orchard keepers that produce peaches. The bees provide a benefit to the orchard keepers by pollinating their peach trees. If the external marginal benefit is $2 per unit of honey, then what is the allocatively efficient output? A. 20kg B. 80kg C. 40kg D. 100kg E. 60kgStep by Step Solution
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