Question
the COVID-19 pandemic caused production disruptions across the economy. TV production, as with most industries, was hit by the COVID-19 pandemic. After the initial shutdown,
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- the COVID-19 pandemic caused production disruptions across the economy.
- TV production, as with most industries, was hit by the COVID-19 pandemic. After the initial shutdown, the state of California identified entertainment industry workers as essential workers allowing them to return to production sites, yet many shows remain on hiatus waiting to continue production. Despite the return to the sets, COVID-19 related protocols apply to these productions. Considering just those shows shot in California, why is production behind schedule?
- the COVID-19 pandemic caused production disruptions across the economy.
- Producing a vaccine entails two phases:
The first phase is research and development (R&D) to find a workable approach. There are several competing platforms for vaccine development, including using inactive viruses as well as more modern techniques utilizing RNA to simulate immune response without viral particles.3 Once a platform and its specific vaccine are proven effective, production begins. The R&D facilities, however, are not commercial production facilities, they are laboratories with limited production capacity.
The second phase moves production from the laboratory to commercial scale production facilities.
The production of any vaccine is a two-stage process. First, the active ingredient (e.g., the sterile virus) is produced, and used as an input to create the dosage form of the vaccine (normally a liquid containing the active ingredient).
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- Suppose the government wishes to expand production of the dosage form of the vaccine in the first phase by producing the active ingredient, say in government labs, and turning that input over to the R&D facilities to produce more of the dosage. Using production economics of the short-run, what limitations does the government face in ramping up production of the vaccine?
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- How do these limitations change when moving into the second phase of production?
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