Many citizens are concerned about vaccination risks, and a government needs to consider variable ways of incentivizing vaccinations. Suppose that a company has found an effective vaccination for COVID-19. The marginal cost of production is $4, and assume there is no fixed cost. The company is the only firm in the world that can produce the vaccination, so it will be a monopoly seller. Suppose the demand for the vaccination is p=32-2q.

Suppose the government gives up the subsidy scheme. Instead, it asks the company to sell the vaccination at cost. In return, the government will provide a one-off lump-sum reward to the company.

(f) Suppose the company accepts the deal. The quantity of vaccination it sells is _______________

(g) In order for the company to accept the deal,the minimum reward that the government has to offer is _________________________________ [Hint: if the company rejects the deal, it will continue its monopoly practice]

(h) Given this reward amount, the buyer surplus is______________________ The seller surplus is ____________________________________________

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The social surplus is ______________________________ [Hint: you must consider the government's reward expenditure]

(i) Among the three options (monopoly,subsidy, andreward), _________ is the best for society, i.e., its generates the largest social surplus.