A honey bee farm produced honey. The honey was sold in the market 2$ per kg and 10kg honey was collected from each box. Next to the bee farm, there was a blueberry farm. The bees flew into the blue berry farm and each box could pollinate for one hectare of the blueberry. However, the bees were not enough to pollinate all the plants so that the blueberry farm's owner hired people to hand pollinate at the cost of 10$ per hectare. How many boxes of honey bees were in the bee farm to maximize the bee farm's profit and how much was the price? How many boxes and at what price of honey bees should be good for the social net benefit?
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If each box produces 10kg of honey and the honey is sold for 2$ per kg, then each box generates 20$ in revenue from honey sales. Show more…
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