Question

A beekeeper lives adjacent to an apple orchard. The orchard owner benefits from the bees because each hive pollinates about one acre of apple trees. The orchard owner pays nothing for this​ service, however, because the bees come to the orchard without his having to do anything. Because there are not enough bees to pollinate the entire​ orchard, the orchard owner must complete the pollination by artificial​ means, at a cost of ​$1515 per acre of trees. Beekeeping has a marginal cost MC equals 15 plus 5 Upper QMC=15+5Q​, where Q is the number of beehives. Each hive yields ​$4040 worth of honey. How many beehives will the beekeeper​ maintain? ​(Enter your response using an integer.​) The beekeeper will maintain nothing hives.

Answer 1

Answer:

The beekeeper will maintain hives where marginal cost equals marginal revenue.

So,

15 + 5q = 40

5q = 25

q = 25/5

q = 5 hives.

Explanation: