Question

Bret Bluesinger grows highbush blueberries. He wants to get a price premium for fruit pollinated by local pollinators. Local pollinators require habitat. A university entomologist provides him with data for the relationship illustrated below. The crop output (Y) is blueberries (in 30-pound boxes) while the Pollination output (2) is a service (in 100's of flowers pollinated per hour). The percentage pairs below first give the proportion of land in pollinator habitat, then the proportion of land in blueberries. So (0 % ,100 % ) means no land in pollinator habitat and 100% of land in blueberry bushes. 1. 250 230 (20%,80%) (40%,60%) 210 (0%,100%) 190 (60% 40%) 170 150 130 (80%,20%) 110 90 70 50 200 150 100 Z-Pollination service (3%) What is the economic name of the curve shown here? a. S (4%) What percentages of land should Bret devote to pollinator habitat and to blueberry area if he gets paid for blueberries but not for pollination services? b. Y-Crop output 50

could you explain number 1 a~c for me? thank you so much

Answer 1

Answer:

(a) The curve shown is production Possibility curve. Gret can either produce 225 boxes of blueberries or 17000 flower pollination.

(b) Gret should devote 80% of land to blueberries and20% to pollination service because at this allocation Gret will produce maximum amount of blueberries for which he is paid by the consumers.

(C) the economic relation is called pareto non-optimal because production of both outputs increases after reallocation of resources.