Question
Beximco Pharmaceuticals Limited has entered into a deal with the Serum Institute of India to acquire 30 million doses of a COVID-19 vaccine named AstraZeneca.
Beximco Pharmaceuticals Limited has entered into a deal with the Serum Institute of India to
acquire 30 million doses of a COVID-19 vaccine named AstraZeneca. According to this deal
Beximco will purchase five million doses of vaccines per month, whenever the vaccine is ready.
AstraZeneca will cost about 425 taka per dose to import.
(a) If Beximco is the only distributor in Bangladesh of the COVID-19 vaccine, discuss the impact
of this scenario on the price, quantity, profit margin of Beximco, consumers' surplus, producers'
surplus, and social welfare in the market of COVID-19 vaccine.
(b) Suppose, several other pharmaceutical companies start importing the vaccine of COVID-19.
How will it affect the price, quantity, and social welfare in the market?
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