A beekeeper keeps hives of bees in order to produce honey. The bees may pollinate nearby fruit trees belonging to neighbours, but they can also inflict a painful sting on gardeners. If both of these events take place, what effect will they 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.