[ORDER SOLUTION] Covid 19 Vaccination

Please read instructions before answering.Read all the paper carefully. You need to answer 2 questions. Each question is 15 marks. Your marks will depend on how you define the terms and concepts, your diagram, the use of relevant examples and your explanation. Don’t forget to label all your diagrams and all the lines on your diagrams. Short sentences and one-word answers won’t give you full marks. For 15 marks you need to give full answers, a very good explanation including definitions and examples is expected. Make sure your 2 answers add up to 30 marks.1. Covid 19 vaccination producers could be accused of colluding to gain monopolistic power and exploit the consumer. An investigation was established to see if this could happened. Discuss why collusion can occur in one market structure, which one and why, but not in other market structures and which ones and why. 15 marks2. Mr. Lopez Obrador is trying to defend the survival of Pemex. Those who favour the Reforma Energética argue that competitive markets in the energy industry will allow for prices to be reduced, the consumer’s surplus to increase, the quantity exchanged to be higher and the production be more efficient. Using a diagram, comparing both market structures, explain if the previous arguments in favour of competitive markets vrs. Monopoly market structure are correct. 15 marks3. Explain, with the use of diagrams, why (what for) manufacturers differentiate their products and how they do it. Describe the characteristics of two market structures where product differentiation occurs. 15 marks4. Explain, with the aim of a diagram, why when those around me get the vaccination for Covid 19, I benefit from their vaccination imposing to others a positive externality. Why this situation is referred as a “market failure”? What needs to be done to correct for the failure and which economic agent should do it and why? 15 marks5. Explain why it is not possible for a given firm to make profits when the good in question is a “public good”. 15 marks

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