Question
This is the question: Let's look at a COVID-19 vaccine from the economics point of view. There are two ways to think about what the
This is the question:
Let's look at a COVID-19 vaccine from the economics point of view. There are two ways to think about what the term "vaccine" represents. They are
(a) A vaccineformulaor amethod of producinga given vaccine. At this level, a vaccine is just an idea, a recipe that anyone with a proper equipment can use to produce a vaccine product.
(b) An actual vaccine dose in a physical form (e.g. in a vial) that was manufactured by a company.
Discuss the rivalry and excludability of these two versions of a good, (a) and (b), and classify them into one of the 4 categories of goods discussed in Lecture 5. Do you think a competitive market will produce an efficient quantity of good (a)? What about good (b)? Carefully explain your reasoning.
If one of the goods cannot be produced by a competitive market, what are the possible solutions to this problem?
I understand A is a public good but as soon as the idea is produced it becomes Quasi. I know good B is a private good. I don't know the answers to bolded part of the question. Thank you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started