Your consulting firm has been contracted by the government of San Escobar to provide recommendations regarding influenza immunizations. Currently, the government of San Escobar does not intervene in the market for flu immunizations in any way and the market is best characterised as perfect competition. Assume that there is an equal number of older adults (+65 years old) and younger adults (18-22 years old) living in San Escobar. Assume also that each citizen buys their own immunization. Influenza (the flu) is a highly contagious disease, usually prevented by vaccination and treated by managing symptoms. Spread by body fluids from infected people, symptoms include a runny nose and sore throat. Flu can affect anyone. The same vaccination is given to all age groups and equally effective for each age group.

1A)What non-financial intervention would you recommend the government implement to bring the rates of immunization to socially optimal levels? [1pt]

1B)The government asks you whether instead of using financial intervention, consolidating the existing firms producing influenza immunizations into one firm would help bring the vaccination rates to the socially optimal level. Please provide your response, including graphs. [2pt]