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short and concise answers please The world market inverse demand for an effective vaccine against a global virus has been estimated to be p(y) =

short and concise answers please

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The world market inverse demand for an effective vaccine against a global virus has been estimated to be p(y) = 40 - 4y, where p is the unit price and y is measured in appropriately normalized units. There are two pharmaceutical firms serving this market, Antigua (firm 1) and Peterson & Peterson (firm 2). Suppose the costs of production for each firm are, respectively, Ci(y1) = 1; and C2(y2) = 2y;. (The vaccine is supposed to be given to the consumers for free, but different governments and international institutions will be paying the price to the two pharmaceuticals.) (a) The two firms compete in quantities. Find the Cournot equilibrium (indicate the number of units sold by each firm, market price, and profits of each firm). (b) It is suspected that the two firms are talking about forming a cartel. Apparently, they have agreed to split the cartel profits in the same proportion as they were enjoying under Cournot competition. Could you find the cartel solution? That is, output produced by each firm, market price, cartel profits, and individual profit for each member of the cartel.(c) For the remainder of this question, there has been an important development. Specifically, POP has come up with a technological innovation that allows it to produce as cheaply as Antigua. This means that now C2(y2) = 33. How would the cartel agreement have to be revised? (That is, calculate the new cartel solution, and in it, note that the profit share would have to be adjusted.) Finally, the World Health Organization is pushing to begin a publicity campaign against this cartel, arguing that it leads to a lower number of vaccines deployed and higher prices, which is questionable, given the other financial needs the world governments have. As a key element in their report, which also will incorporate other data, the WHO proposes to calculate the consumers' surplus difference between the Cournot equilibrium (that could take place in the absence of collusion) and the cartel solution. What would the amount of that difference be

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