You have seven mornings per week. On each morning, you can either study, go to the rock

climbing wall, or sculpt (i.e., make sculptures). If you rock climb, you must be a member of the

club. The membership fee is 100 Bobos each week. And, as member, you pay 10 Bobos for each

morning of climbing. If you sculpt, you must rent a studio which costs 100 Bobos per month.

Each morning you sculp, you use 10 Bobos worth of material.

[15 Marks] Your economics professor has asked you to produce a table showing your marginal

cost for each of 7 mornings you might sculpt during a normal week. Your uncle, who has never

taken economics, has asked you to explain the table and why the values you wrote down make

sense. Provide your answers in sections labelled

The Table

The Explanation

[10 Marks] Assume that in October, you rationally climbed two times per week and sculpted

three times per week. In November, you know that the daily climbing price will be 5 bobo per

morning. Explain, using the costs and benefits of sculping, how you will decide whether to rent

a studio in November. Provide your answer in a section labelled

November

[9 Marks] Assume that in March you rationally climbed two times per week and sculpted three

times per week. A climber from out of town is willing to pay you 50 Bobos per week for your

April membership. If you sell, you cannot climb. If this is the only change the professor is aware

of, what does your economics professor predict about how often you sculp in April? Explain.

Provide your answer in a section labelled

April

[6 Marks] Assume that the following March, you rationally climbed two times per week and

sculpted three times per week. In April the membership fee for the climbing club will increase

150 bobos per week. If this is the only change the professor is aware of, what does your

economics professor predict about how often you sculp in April? Explain. Provide your answer

in a section labelled

April, redux