need accurate answer 29-32

29-32. A single firm owns the only subway system in a large city. The firm has total costs in the short run given by: TC = 1080 + 10q where q is the number of riders per second using the subway and TC is the total cost per second in dollars. The demand for subway rides is given by: P = 40 - 0.2q where q is the number of riders per second using the subway and P is the price charged to each consumer in dollars. Questions 29 through 32 concern this subway system. 29. To maximize profit, what price will the firm charge? A) SO B) $40 C) $35 D) $30 E) $15 F) $10 G) $20 H) $25 I) $28 J) $24 30. If the government decides to regulate the subway and requires the firm to charge a price that reduces economic profits to zero, what price will be charged? [Hint: If there are two possible answers, you should assume that the regulator will require the lower of the two possible prices.] A) SO B) $10 C) $15 D) $18 E) $20 F) $22 G) $25 H) $28 I) $23.80 J) $18.40 31. When the government regulates the subway as described in question 30, what is the change in the total gain to society (per second) in moving from a profit-maximizing monopoly to a regulated monopoly? A) SO B) $3.00 C) $202.50 D) $225 E) $247.50 F) $45.00 G) $2250 H) $420 I) $4000 J) $1020 32. Now the government decides to take over the subway and operate it at a loss by charging price equal to marginal cost. What is the change in the total gain to society (per second) in moving from a regulated monopoly (as described in question 30) to a publically operated utility? A) SO B) $960 C) $2250 D) $1170 E) $1875 F) $810 G) $720 H) $360 I) $4000 J) $1020