A local beekeeper starts producing honey, which leads to increased fruit yields for nearby farmers. Which of the following best describes this scenario?

This scenario illustrates a positive externality in production, which occurs when the actions of one party benefit others without any direct compensation. In this case, the beekeeper's honey production helps pollinate nearby crops, leading to higher fruit yields for farmers. The farmers gain more fruit because the bees are transferring pollen from flower to flower, which is essential for fruit growth. For example, if the beekeeper has a large number of bees, they can significantly improve the apple harvest for a nearby orchard. This situation shows how one person's economic activity can create unexpected benefits for others in the community.