Urban transit systems, especially those with rail systems, typically experience significant economies of scale in operation. Consider the transit system data in Table below. Note that the quantity is in millions of riders.

a. If the transit system were allowed to operate as an unregulated monopoly, what output would it supply and what price would it charge?

b. If the transit system were regulated to operate with no subsidy (i.e., at zero economic profit), what approximate output would it supply and what approximate price would it charge?

c. If the transit system were regulated to provide the most allocatively efficient quantity of output, what output would it supply and what price would it charge? What subsidy would be necessary to insure this efficient provision of transit services?