Suppose you are thinking of starting a fishing business. The fixed cost of the business is the cost of a fishing rod, which is $15. The variable costs are baits, which is $1 per fish caught, and your time. The opportunity cost of your time is $10 per hour. The following table shows the relationship between hours spent fishing and number of fish caught. (a) (0.5+0.5=1 mark) What is the marginal product of each hour spent fishing? Explain why this number changes as the number of fish you catch increases. (b) (0.25+0.25+1=1.5 marks) What is the TC of catching 10 fish? What about the TC of catching 18 fish? Draw your TC curve. (c) (0.25+0.25+1=1.5 marks) What is the AC of 10 fish? How about 18 fish? Draw the AC curve and explain its shape. (d) (0.25+0.25+0.5=1 mark) What is the MC of catching the 20 th fish? What about the MC of 29 th fish? Explain why the MC changes as the number of fish you catch changes. (e) (0.5+0.5+0.5+0.5=2 marks) Suppose that you can sell fish for $5 each. How many fish will you catch in order to maximize profit? What is the maximum level of profits that you can make? If the fish market is perfect competitive, what prediction can you make in the long run? (f) (0.5+0.5=1 mark) Suppose that you purchase your rod and begin fishing. Suddenly, the price of fish drops to $2.10 each. If you continue to fish, how many fish will you catch in order to maximize your profit? What is the maximum level of level of profit you can make? (g) (0.5+0.5=1 mark) Suppose, as in part (f), that the price of fish has suddenly dropped to $2.10, but you have already bought your fishing rod. The resale price of fishing rod is zero. Will you continue to fish? why? (h) (1 mark) How would you answer to part (g) change (if at all) if you could resale your rod at $5