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Suppose firm 1 wants to have reputation as the world's first and only vaccine producer (monop- olist). How many vaccines would firm 1 have to
Suppose firm 1 wants to have reputation as the world's first and only vaccine producer (monop- olist). How many vaccines would firm 1 have to produce in order to stop firm 2 from entering the vaccine market? How much profit would firm 1 make in this case? Do you think firm 1 would take this entry deterrence strategy? 5. Suppose the World Health Organization (WHO) wants to encourage firms' vaccine development efforts by covering 99% of each firm's initial investment cost. Hence, each firm's fixed cost is now reduced to f = 100. Would firm 1 now want to take the entry deterrence strategy? Would the WHO's subsidy result in more people being vaccinated
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