The Socially Efficient Number of Beehives for Bryan's Honey Bee Farm

What is the socially efficient number of beehives for Bryan to have if all costs and benefits are considered?

Multiple Choice : A. 4 beehives B. 3 beehives C. 2 beehives D. 1 beehive

Final answer: The socially efficient number of beehives for Bryan to have is 2 beehives.

Answer:

The socially efficient number of beehives for Bryan to have is 2 beehives.

Explanation:

The socially efficient number of beehives for Bryan to have is 2 beehives. To determine this, we consider the costs and benefits associated with each beehive. Each beehive produces $100 worth of honey per month, resulting in a benefit of $200. Additionally, each beehive provides pollination services, increasing revenues by $100 per month, resulting in a total benefit of $300 per month. If Bryan were to have more than 2 beehives, the costs of maintaining and managing the additional hives would exceed the additional benefits, making 2 beehives the socially efficient number.