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The Canadian government is worried about the second Covid-19 wave and its economic consequences. Currently, pharmaceutical companies are investing in research and development in order to come up with a vaccine. If a firm develops a vaccine, the government is considering granting the firm a monopoly. Regarding the pricing of the vaccine, the government has to decide whether to impose a price cap or subsidize the purchase of vaccine shots. 1) Discuss the pros and cons of granting a monopoly to a successful firm 2) Assess the consequences of imposing a price cap on vaccine shots or subsidizing their purchase. Which alternative do you support and why? Explain.