plz answer with explanations but do not need to be too detailed thanks

Question C1 [20 marks] To produce honey, beekeepers raise bees in hive boxes that are specically designed to allow for easy access to honey. Hives can be co-located near apple orchards or near orange groves: 0 When beekeepers keep their hives near apple orchards, their bees will pollinate the apples, increasing the output of the orchard. I When beekeepers keep their hives in orange groves, the sticky nectar in orange blossoms helps the bees to produce more honey. Question C1.1: Suppose that the beekeepers have property rights over their beehives but can only place their beehives next to an apple orchard or an orange grove if they are granted permission to the land. Beeswax Beehives has already been paid to locate its bees at Amy's Apple Orchard when it is contacted by Groovy Groves who is willing to allow Beeswax to move its bees to its orange grove instead. Beeswax is negotiating with Amy's Apples to break its current contract. The two companies have determined that their economic prot for staying in the Apple Orchard and or moving to the Orange Grove are: Profit A ale Orchard Groves Oran e Grove Assume that there are no transaction costs for bargaining. Based on the Coase Theorem, would you predict that the bees stay or move? Let P be the price paid by Beeswax Beehives to Amy's Apple Orchard to break its contract. What is the lowest possible P that would lead to this outcome? What is the highest possible P that would lead to this outcome? [4 marks] Question C1.2: In the last 10 years, there has been a dramatic fall in bee populations due to the spread of Varroa mites, which infect and kill the larvae of bees and can cause bee colonies to collapse. Beeswax Beehives and its competitor Candlewax operate hives in the same area and must decide on whether to transport their bees to different spots in the orchard in the season or to keep them stationary. Transporting bees can be privately lucrative but potentially exposes both operators to the mite. Based on the actions of both parties, the payoffs are as follows: Candlewax Prot Kee- Stationa Keep Stationary 600, 700 250, 500 U: m m E