For Red Delicious apple farmers in Washington, 2001 was a terrible year (Linda Ashton, “Bumper Crop a Bummer for Struggling Apple Farmers,”

San Francisco Chronicle, January 9, 2001, C7). The average price for Red Delicious apples was $10.61 per box, well below the shutdown level of $13.23.

Many farmers did not pick the apples. Other farmers bulldozed their trees, getting out of the Red Delicious business for good, removing 25,000 acres from production. Why did some farmers choose not to pick apples, and others to bulldoze their trees? (Hint: Consider the average variable cost and expectations about future prices.)