Question 5 1 pts Suppose that a local coffee sh0p is Operating in a mon0polistically competitive environment and is maximizing its prot. The price of a large latte is $4 and the average total cost is $2.50. Based on this information, the rm is operating in the and we can expect short run; rms to exit the market. short run, rms to enter the market. long run; rms to exit the market. long run, rms to enter the market. Question 6 0.5 pts In which of the following market structures do sellers act as price takers? Monopoly Oligopoly Monopolistic Competition Perfect Competition \fConsider the case of a shared paved sidewalk. To be useful it must run the entire block, but the width depends on the neighbors' willingness to pay for it. The table shows the marginal benet for the two people living on this block, Socrates and Plato, along with the marginal cost of each foot of paved sidewalk. Width of paved sidewalk (it) 1 MBSocrates $125 MBPlato $135 MC $130 Acting independently, how much paved sidewalk would Socrates pay for? 0ft. 1ft. 2ft. 3ft. l paved sidewalk. To be useful it must run the entire ; on the neighbors' willingness to pay for it. | benet for the two people living on this block, :h the marginal cost of each foot of paved sidewalk. 1 2 3 $125 $100 $ 75 $135 $110 $ 85 $130 $145 $160 iUCh paved sidewalk would Socrates pay for? 0ft. 1ft. 2ft. 3ft