Suppose a Farmer Is a Price Taker in Soybeans with Cost

question 12

Multiple Choice

Suppose a farmer is a price taker in soybeans with cost functions given by ?
TC = .1q² + 2q + 30
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 new total cost function is

• A)still TC = .1q² + 2
• B)TC = .1q² + .2q + 80
• C)TC = .1q² + 2q + 50
• D)TC = 50

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Definitions:

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, which can be transferred to another holder.

Rescission

The legal nullification of a contract, returning all parties involved to their original positions before the contract was made.

Breach of Duty

Failure to meet a standard of care legally owed to someone, resulting in harm or damage.

Negotiation

The process by which parties discuss and arrive at a mutually acceptable agreement.