2. [10] The City of Waterloo is trying to encourage people to spend time outdoors this summer so it is considering whether to allows food trucks to serve patrons at public parks. The cost of operating a food-truck is $4,000 per month. Suppose that if 11 food- trucks operate, the total monthly revenue from food-trucks in public parks is $2,000(20n 11.2). C 370 Winter 2021 Final Exam a. [3] If the city government decides to let the market work its magic and allows free-entry of food-trucks, how many food-trucks will choose to operate? Is this a socially efficient number of food-trucks (explain)? b. [3] If the city government decides to introduce a licensing scheme that limits the number of food-trucks to the level that maximizes total profits, how many food- trucks would be allowed to operate? Is this the socially efficient number of food- trucks (explain)? trucks (explain) : c. [4] If the city government wants the number of food-trucks to be the number that maximizes total profits, how much should it charge per month for a food- truck permit? Explain intuitively why this licensing scheme will help the city achieve it's goal