Fruit farmers pay beekeepers for their honeybees’ pollination services. Honeybees provide an external benefit to fruit farmers. Also, fruits provide an external benefit to the beekeepers because their honeybees need their flowers. What kind of externality-increasing method is this?
Added by Andr-S L.
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In this scenario, we have two externalities at play: the positive externality provided by honeybees to fruit farmers through pollination services, and the positive externality provided by fruits to beekeepers as a source of nectar for their honeybees. Show more…
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