Question

1. How can a positive externality, like the pollination benefits bees provide famers, lead to undesirable outcomes?

Answer 1

Answer - The pollination benefits from bees has several positive externlaities and outcomes whicj are undesirable. Apart from providing the honey to the fee farmers , the bees pollinate and transfer the pollengrains from one plant to other , helping to grow plants. They also propagate the growth of Flowers , fruits and vegetables which is beneficial to the farmers who deal in this because they will not have to employ the labor force now to transfer the seeds or make effors for the extra growth of flowers or fruits. Hence this saves a large amoun of labor cost. These are the intended consequences of this positive externality.