Suppose a Farmer Is a Price Taker in Soybeans with Cost

question 9

Multiple Choice

Suppose a farmer is a price taker in soybeans with cost functions given by ?
TC = .1q² + 2q + 100
MC = .2q + 2
Suppose the farmer has to purchase a license for $50 per period in order to stay in business. In this case,its marginal cost function is

• A)still MC = .2q + 2
• B)MC = .2q + 50
• C)MC = .2q + 52
• D)MC = 50

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Definitions:

Exclusively

Without involving anything or anyone else; solely.

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