Watch the following video of Jan, the apple farmer, who wants to maximize her profits from selling apples. However, she has to consider her marginal revenue. She also needs to think about what is ethical.

Link to video:

https://www.youtube.com/watch?v=W-GEZAthjCk

answer the following question:

1. State the 3 basic economic questions.

2. What would Jan's answers be for each of the 3 basic economic questions?

3. What is the marginal cost for picking the apples on the highest parts of the trees?

4. Based on marginal analysis, what is the level highest cost Jan would be willing to pay to pick an apple?

5. Think about how a cost-benefit analysis might be done. What 3 alternatives might Jan have for the apples on top of the tree? 6. Based on your analysis, what is the best option? What were the second and third best options? 7. Based on how you believe Jan would respond to each of the 3 basic economic questions, what is the opportunity cost of choosing the best decision? 8. Provide an example of a fixed cost and a variable cost for harvesting the apples. 9. Is it ethical to leave unpicked apples, even if they cost more to pick than sell? Why?