2-PHARMACEUTICALS AND VACCINE (2 PAGES REQUIRED IN TOTAL) Background: There are 2 pharmaceutical companies that are researching a cure / vaccine for corona - hopefully, these companies will have a solution for the world shortly- in the meantime, some governments are proposing for alternative (close to substitute) treatments medicine. Explain what market structure does the pharma industry operate under (Hint: it is not perfect competition or Monopoly) -IN GENERAL, how does Demand, Supply, elasticity and pricing work under such conditions? (Hint: Ch 5 and 8) 5 points One company finally succeeds in producing the most efficient vaccine. Describe or explain in detail the following situations (25 points) -What is the new market structure this Pharma company belongs to now? Why? -List the 5 market structure characteristics for a Monopoly and explain the relation to the Corona vaccine. How does Initial supply and demand look like for the new vaccine? (What about initial elasticity and price?) -What happens in the long term for supply and demand if other pharmaceutical companies find a similar vaccine? (What about long term elasticity and price under the same conditions?) "Describe what happens to Economic profits in the initial phase and the long term? (Hint Ch 7, green / red / yellow) Explain how the creative destruction concept applies (from alternative cure to Corona vaccine). Are there any benefits to everyone from having a Monopoly