How might allocation under allocation get resolved


An apple growers orchard provides nectar to a neighbors bees, while the beekeepers bees help the apple grower by pollinating the apple blossoms. Use figure 16.2b to explain why this situation of dual positive externalities might lead to an under allocation of resources to apple growing and to beekeeping. How might this allocation under allocation get resolved via the means suggested by the coase theorem?

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Microeconomics: How might allocation under allocation get resolved
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