a) You are a private tutor who conducts one-on-one home tuition in economics for senior college students. You are considering growing your business. In particular you are considering vertical and horizontal integration. Using the theory of the optimal boundary of the firm, discuss the make-orbuy decision as well as the scope for horizontal integration and diversification of your business. What stages of the vertical chain should you consider conducting inhouse? What other horizontal markets may you integrate into?

b) During the novel coronavirus (COVID-19) pandemic, the Singapore government introduced lockdown measures and travel restrictions that severely reduced the trade of many small businesses. Singapore government is concerned about business closures, loss of income and unemployment in the markets concerned and is considering further interventions especially as the danger from the virus is beginning to subside. Using the demand-supply model, explain these phenomena in one or two markets of your choice. Advise which market interventions, if any, government should conduct in these markets and why.