Suppose that Ned is a beekeeper who currently keeps 30,000 bees that roam the neighbourhood, and also spends a few hours each day working in a caf earning $80. Across the road, Kelly manages the local a botanical gardens. Ned could give up his caf job to run an extra 300 bees, which by itself he would value doing at $20 each day. For every 30,000 extra bees in the neighbourhood, Kelly's gardens would be better pollenated, resulting in a vibrant flower display which would earn her an extra $70 in donations per day from garden-goers. a A. What is the socially optimal outcome? Does a transaction need to take place to achieve it? B. Suppose instead that Ned is unable to manage 60,000 bees by himself and would have to pay his younger brother Dan $20 each day to help him keep the bees. Does the socially optimal outcome change? C. Now suppose that there a group of individual beekeepers in the area: Ned, Dan, Steve and Joe, that sell honey. Do you think the local government should intervene in the honey market, and if so, how and why? Part A: The socially optimal outcome is correctly identified, and any relevant transactions or lack thereof are explained. Part B: The socially optimal outcome is explained and compared to part A. Part C: A clear argument is made for or against intervention and an appropriate conclusion is reached. Suppose that Ned is a beekeeper who currently keeps 30,000 bees that roam the neighbourhood, and also spends a few hours each day working in a caf earning $80. Across the road, Kelly manages the local a botanical gardens. Ned could give up his caf job to run an extra 300 bees, which by itself he would value doing at $20 each day. For every 30,000 extra bees in the neighbourhood, Kelly's gardens would be better pollenated, resulting in a vibrant flower display which would earn her an extra $70 in donations per day from garden-goers. a A. What is the socially optimal outcome? Does a transaction need to take place to achieve it? B. Suppose instead that Ned is unable to manage 60,000 bees by himself and would have to pay his younger brother Dan $20 each day to help him keep the bees. Does the socially optimal outcome change? C. Now suppose that there a group of individual beekeepers in the area: Ned, Dan, Steve and Joe, that sell honey. Do you think the local government should intervene in the honey market, and if so, how and why? Part A: The socially optimal outcome is correctly identified, and any relevant transactions or lack thereof are explained. Part B: The socially optimal outcome is explained and compared to part A. Part C: A clear argument is made for or against intervention and an appropriate conclusion is reached