QUESTION 2 Governments generally want people to get immunised against the flu and other diseases such as COVID-19. Nonetheless many people refuse to take the vaccination jab, because they overestimate the likelihood of side effects, because they are complacent about getting infected. They also might not care or understand that their immunity protects others. Use the theories of market failure and government intervention to analyse the motives of government, the anti-vax phenomenon and their consequences. What, if anything should government do to make more people get vaccinated? What would be the problems with such interventions?

QUESTION 3 When COVID-19 stated spreading across the world, the race was on to develop vaccines as quickly as possible. Such research & development has a high fixed cost and can only be undertaken in industries with high market concentration where firms have significant monopoly power, like the pharmaceutical industry. Examine this industry using the theory and models of industry structure. Should government be worried about any aspect of how an industry with this market structure will perform?

QUESTION 4 Pfizer is one of the world's largest pharmaceutical companies. Developing its COVID-19 vaccine is a costly, uncertain and complex process. This company would need to consider which parts of the vertical chain to outsource and which to conduct inhouse. Using the theory of the optimal boundary of the firm, discuss Pfizer's make-or-buy decision for developing and producing its COVID vaccine. What stages of the vertical chain should Pfizer consider conducting inhouse, and which should be outsourced? Provide reasons for your findings.