Suppose a farmer is a price taker in soybeans with cost functions ...

[Lobcity]

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

[yuyiding]

Answer to Question 1

b

Answer to Question 2

a

[Lobcity]

Excellent

[upturnedfurball]

TYSM