Peer review is generally done for free-- nominally by professors, but in practice the bulk of the review is done by grad students. The bulk of the work, obviously, is by the researchers who write the articles, and they similarly receive no compensation for their work from the publishers.
It's hard to say where the cost lies-- there's definitely some effort for formatting, and maintaining the infrastructure to distribute and index articles, but surely it can't be $30 for a single article served over the web. The whole situation with publication of academic works is shameful and sad.
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