Steven Cheung examined the relationship between beekeepers and apple growers.Cheung noted that: "Pollination contracts usually include stipulations regarding the number and strength of ...[bee] colonies,the rental fee per hive,the time of delivery...the protection of bees from pesticides,and the strategic placing of hives." Cheung's suggests that the relationship between beekeepers and apple growers is an example of

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Quizplus · Accepted Answer

Cheung's description of the relationship between beekeepers and apple growers, where they negotiate and agree upon the terms of pollination contracts, reflects the Coase Theorem. The Coase Theorem states that, in the absence of transaction costs, private bargaining between parties will result in an efficient allocation of resources, regardless of how property rights are initially assigned. In this case, the beekeepers and apple growers are able to negotiate and agree upon the terms of their relationship, including the number and strength of bee colonies, rental fees, and the protection of bees from pesticides, to achieve an efficient outcome.

Steven Cheung Examined the Relationship Between Beekeepers and Apple Growers