Author Question: Suppose a farmer is a price taker in soybeans with cost functions given by TC = .1q2 + 2q + 30 MC = ... (Read 71 times)

Lobcity · **on:** Jul 1, 2018

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

Question 2

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