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Jack 

  and the 

Beanstalk

Once upon a time there was a young boy 

names jack who lived with his poor mother 

and his pet cow, Daisey. 

They Used his cow Daisey for milk.

But one day Daisey didn't produce any milk. Jack thought 

to himself, "that's weird, Daisey has a shortage of milk, 

that means there is a temporary problem that can be fix."

That day Jack told his mother that Daisey want producing 

milk anymore. 

she told Jack, "We must sell Daisey."

Jack agrees and tells his mother that he will take Daisey to 

the market the next day."

Jack tells his mother, " the cost of daisey would be great 

because shes in such great demand." 

but she tells him, " with the shortage of milk, because shes 

not producing any more people wont want her as much, so 

the cost will go down because she wont be in such high 

demand. 

As Jack was walking long he ran into a strange old man. 

The man offered him five beans for his cow. 

but Jack turned him away. 

As Jack continued to walk the man screams out, "your wants are 

too great but your sources are limited."

Jack turned and asked the what he meant.

the man told him, "no one will be willing to pay for a cow that 

doesn't produce milk, because no one demands a cow with no 

milk." 

so Jack took the five beans and gave the man the cow, Jack 

made a choice to listen to the man because his resources were 

limited. 

Listening to the man and taking the beans was his opportunity 

cost he thought to himself, "that option was the most desirable 

alternative." 

When he got home that day he showed his 

mother his trade. 

Angry she yelled, "Jack that will never 

work, magic   beans don't exist. you have to 

get the cow back!" 

But Jack argued, "Mother this is a profit. the 

man told me that the magic beans grow 

straight to the sky!" 

Jacks mother tells him, "the price level on the cow is way more 

than five beans, go to any market they will tell you they sell 

cows for much more!"

Jack tells his mother, "give me one day and you will see that the 

magic beans will be of self interest, because they will produce 

enough to sell all the time."

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