The figure above shows the market for polio vaccination in Africa
a) If the market is competitive and left unregulated, how many doses of vaccine will be administered?
b) If the Melinda and Bill Gates Foundation underwrites the cost of the vaccine by paying for a large fraction of the preparation and delivery cost, what will happen to the number of doses administered? Why?
a) If the market is competitive and left unregulated, 4 million doses will be administered.
b) If the Foundation underwrites the cost of the vaccine, the marginal cost of the vaccine will drop. The result will be similar to a government subsidy: part of the price of the vaccine will be paid for by the Foundation.. The market's efficiency will be increased.
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The theory of economic growth focuses on the
A. growth of real income equality in the long run; not on the growth of real income in the short run. B. growth of resources in the long run, not on the efficiency of resource use in the short run. C. growth of potential output over the long run, not on fluctuations in the level of economic activity in the short run. D. advancements in technology over the long run, not on short-run increases in real GDP.
The breakfast cereal industry has a four-firm concentration ratio of 80 percent. Is this enough information to classify the industry as an oligopoly? Is a high concentration ratio evidence that an industry is not competitive?
What will be an ideal response?