Suppose a Farmer Is a Price Taker in Soybeans with Cost

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