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Consider a firm called Health-R-Us that is a monopoly. Assume now that Health-R-Us has discovered a vaccine for corona-virus. Why might the government be willing
Consider a firm called Health-R-Us that is a monopoly. Assume now that Health-R-Us has discovered a vaccine for corona-virus. Why might the government be willing to grant (and allow to remain in place) a patent to Health-R-Us, despite the dead weight loss and the ensuring monopoly profits caused by such a patent? Explain your answer. For simplicity assume the vaccine is only relevant for the domestic market (i.e., there is no global market for vaccines, it is only in Australia).
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