Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 7

A soft drink manufacturer that uses just labor (variable)and capital (fixed)paid a consulting firm thousands 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. (Hint: First,determine the price of labor.)b. Do MC,AVC,and ATC have the relationship to each other that you learned in this chapter? Explain.