Policy prescriptions. Briefly list the costs and benefits of the following hypothetical policies. Predict what effect each will have on innovation. a. The U.S. government proposed to subsidize all vaccines for Covid-19 such that individuals do not have to pay to be vaccinated.

COSTS:

BENEFITS:

PREDICTED EFFECT:

b. The patent length for drugs to treat fatal diseases is reduced to five years, and all current patents for such drugs that are already more than five years old instantly expire.

COSTS:

BENEFITS:

PREDICTED EFFECT