A soft drink manufacturer that uses just labor (variable) and capital (fixed) paid a consulting firm thousand of dollars to calculate short-run costs at various output levels. But after the cost table (see below) was handed over to the president of the soft drink company, he spilled Dr Pepper on it, making some of the entries illegible. The consulting firm, playing tough, is demanding another payment to provide a duplicate table.

a. Should the soft drink president pay up? Or can he fill in the rest of the entries on his own? Fill in as many entries as you can to determine your answer.
b. Do MC, AVC, and ATC have the relationship to each other that you learned in this chapter?Explain.

Number of Output Units of per Day Ca Workers TFC TVC TC MC AFC AVC ATC 10 10 10 10 10 0 $1,000 100 $9,000 20,000 40,000 60,000 80,000 $0.325 225 30,000