A bee-keeper keeps hives of bees in order to make honey. The bees may pollinate neighbours’ fruit trees, but they can also inflict a painful sting on gardeners. If both of these events happen, what effect will this have on costs and benefits?
- AExternal benefits will fall and social costs will fall.
- BExternal costs will rise and social benefits will fall.
- CSocial costs and social benefits will fall.
- DSocial costs and social benefits will rise.