The diagram below shows the supply and demand diagrams for the competitive market for honey in one region.MC0 represents private marginal cost and MB0 represents private marginal benefit.
FIGURE 16- 3
-Refer to Figure 16- 3.Assume there are two types of firms in this region - beekeepers that produce honey and orchard keepers that produce peaches.The bees provide a benefit to the orchard keepers by pollinating their peach trees.In the absence of any government intervention,the equilibrium price and quantity in the honey market are

Question

The diagram below shows the supply and demand diagrams for the competitive market for honey in one region.MC0 represents private marginal cost and MB0 represents private marginal benefit.
  FIGURE 16- 3
-Refer to Figure 16- 3.Assume there are two types of firms in this region - beekeepers that produce honey and orchard keepers that produce peaches.The bees provide a benefit to the orchard keepers by pollinating their peach trees.In the absence of any government intervention,the equilibrium price and quantity in the honey market are

Quizplus · Accepted Answer

The equilibrium price and quantity in the honey market are determined by the intersection of the demand and supply curves. In this case, the equilibrium price is $7 and the equilibrium quantity is 80 kg. This is because at a price of $7, the quantity demanded by consumers is equal to the quantity supplied by producers. The fact that there are two types of firms in the region does not affect the equilibrium price and quantity in the honey market, as these are determined solely by the supply and demand for honey.

The Diagram Below Shows the Supply and Demand Diagrams for the Competitive