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Many citizens are concerned about vaccination risks, and a government needs to consider variable ways of incentivizing vaccinations. Suppose that a company has found an
Many citizens are concerned about vaccination risks, and a government needs to consider variable ways of incentivizing vaccinations. Suppose that a company has found an effective vaccination for COVID-19. The marginal cost of production is $4, and assume there is no fixed cost. The company is the only firm in the world that can produce the vaccination, so it will be a monopoly seller. Suppose the demand for the vaccination is p=32-2q. Monopoly (a) The monopolist's optimal price is _________________________ 6 (b) At this price, the buyer surplus is __________________________ The seller surplus is _____________________________________ The social surplus (i.e., the sum of buyer surplus and seller surplus) is _
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