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How would you go about solving this question? 3. The Top Notch Grill's marginal costs of producing take-out meals are described below. (Total: 16 points)

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3. The Top Notch Grill's marginal costs of producing take-out meals are described below. (Total: 16 points) Quantity of meals Marginal cost ($) 1 6 2 5 3 7 4 10 5 12 6 17 a. What are the two economic principles illustrated by the behavior of the Grill's marginal cost? Explain. (4 points) b. Assuming that the Grill has fixed costs of $7, what is its total cost at each level of production? (Add a total cost column to the table) (2 points) C. Assume that meals sell for $10 each and the Grill is a perfectly competitive firm. What are the Grill's total revenue, marginal revenue, and total profit at each level of production? (Add three more columns to the table). (6 points) d. How many meals should the Grill produce to maximize profits? Explain, in a sentence or two how you arrived at your answer. (2 points) e. What is the relationship between a firm's marginal cost curve and its supply curve? (2 points)

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