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Problem 4. Social Welfare [1 point] Suppose that in Prague the daily demand for taxi rides is Q = 2100-100P where P is the price in $. Suppose also that the daily cost of operating each cab is a fixed $100 dollar rental cost per vehicle, plus a variable cost of VC(q) = 160, where q is the number of cab rides per cab per day. (a) What is the long run total cost function of each cab? (b) If the market is a constant cost competitive one, what is the long-run price of a cab ride? What is the number of rides each cab supplies and the number of cabs operating? (c) What is consumer surplus and producer surplus in the taxi cab market? (d) Does the market achieve the condition for efficiency that p= MC. Explain. (e) Suppose that a tax of $3 per ride is imposed. What is the new market price? What is number of rides per day, and number of cabs? (f) What is the deadweight cost of the tax per day