Suppose that beekeepers' bees pollinate a neighbor's flower garden. In this case, the bee keepers have created a _____ externality, and the marginal private benefit to the beekeepers is _____ than the marginal social benefit.

Question

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The beekeepers have created a positive externality by pollinating the neighbor's flower garden, which benefits the neighbor without them having to pay for it. The marginal private benefit to the beekeepers is less than the marginal social benefit because the social benefit includes both the private benefit to the beekeepers and the external benefit to the neighbor.

Suppose That Beekeepers' Bees Pollinate a Neighbor's Flower Garden