Alice Keeps a Bee Farm Next to an Apple Orchard

Multiple Choice

Alice keeps a bee farm next to an apple orchard. She chooses the optimal number of hives by selecting the honey output level that maximizes her profit. Alice's bees help to pollinate the blossoms in the apple orchard next to her, increasing the fruit yield. Thus

A) the private market provides the socially desirable output of honey.
B) too much honey is produced.
C) the local government taxes honey production.
D) too little honey is produced.