Reference no: EM131581764

Question: The Top Notch Grill's marginal costs of producing take-out meals are described below.

Quantity of metals                        Marginal cost ($)

            0                                            -

            1                                            6

            2                                            5

            3                                            7

            4                                           10

            5                                           12

            6                                           17

a. Assuming that the Grill has fixed costs of $7, what is its total cost at each level of production? (Add a column to the table.)

b. Assume that meals sell for $10 each and the Grill is a perfectly competitive firm. What are the Grill's total revenue (price × quantity), marginal revenue, and total profit (total revenue - total cost), at each level of production? (Add three more columns to the table.)

c. How many meals should the Grill produce, to maximize profits? Explain in a sentence or two how you arrived at your answer.