Solved

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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions