#ECO401
Solution is given below
The Case:
The corona-virus, is a challenging panic for the whole world due to its novelty and fast spread, by affecting developed and developing countries equally. Currently, the world is passing through midst phase of COVID-19 pandemic as a new variant (Omicron) has also been appeared in different regions of the world. Omicron has become a horrifying fear because of its fast transmission and silent disease characteristics. World Health Organization (WHO) is providing medical facilities, distributing safe and effective vaccines in all countries to control the transmission of Omicron. Millions of lives have been saved through safe and effective vaccination in this pandemic. Equal access to effective vaccines along with other precautionary measures are very critical to end this COVID-19 pandemic. Different companies are developing vaccines, World Health Organization (WHO) has evaluated and approved the products of vaccines companies against COVID-19 such as Covovax, Moderna, Pfizer/BionTech, COVAXIN, Sinovac, Sinopharm, Nuvaxovid, Johnson and Johnson.
Requirement:
Keep in mind the characteristics of four market structures discussed in the lectures. Identify in which market structure vaccines companies are operating? Justify your answer by discussing any two characteristics of that market structure.
Solution
In given case the structure vaccines companies are operating is Oligopoly.
Characteristics of Oligopoly Market Structure
1) Numbers of Firms: In oligopoly there are small number of firms in market as in given case there are nine companies which are making COVID 19 vaccines.
2) Freedom of entry: Freedom of entry is restriced in Oligoply Market structure because WHO evaluate and approves the products of vaccines companies
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