Discuss the market for honey and the role of bees in Australia using externality theory
The assignment should be prepared as a business essay in an MS Word document.
Write your assignment as a business essay (use headings) with an introduction, body including sections related to
the parts of the question, and conclusion. Use in-text references when you include information from sources. Add a
reference list (one textbook and at least four scholarly references) after the conclusion. The word count (1200 to
1500 words) is measured from the introduction heading to the end of the conclusion
In this assignment, you need to discuss the market for honey and the role of bees in Australia using
externality theory.
First, find out where honey (beekeeping) is produced in Australia. Summarise this.
Then, find out which countries import Australian honey. (Hint: You may like to use a map of the world).
Summarise this.
Discuss what you have found out about the supply and demand (Australian and overseas) for Australian honey
and the positive externality in production in this market.
Then, draw a correctly labelled supply and demand diagram to show this market with the externality (Hint: draw
this diagram in MS Powerpoint using the draw tool, then copy and paste into your MS Word document). Explain
your diagram.
Finally, given the positive externality in production, suggest one way that commercial beekeepers can be
encouraged to produce the optimal amount of honey. Explain your answer.