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Q3: Externalities and Coase Theorem (10 points) CBC news: For months, more than 150 teams around the world have been working at an unprecedented pace to develop a vaccine against the new coronavirus

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Q3: Externalities and Coase Theorem (10 points) CBC news: For months, more than 150 teams around the world have been working at an unprecedented pace to develop a vaccine against the new coronavirus. Ten of those vaccine candidates are now in Phase 3 clinical trials, in which each is given to thousands of people to ensure it's both safe and effective - the final leg of the process before their potential approval. In the fight against COVID-19, that feels like a light at the end of a long, dark tunnel. But once at least one vaccine is approved, what comes next? "Approval itself is not going to be an overnight solution," said Matthew Miller, an associate professor at the Michael G. DeGroote Institute for Infectious Disease Research at McMaster University in Hamilton. "There's going to be a significant amount of time required to distribute the vaccine and then have enough doses prepared to administer to the population." Public health and vaccination experts also say the months after Canada starts acquiring a vaccine will be rife with challenges, both logistically and ethically, as public health officials will need to determine which groups should get priority access be it health-care workers or other vulnerable demographics - as production scales up to meet demand. "There will inevitably be supply chain issues," Miller warned. "It's going to take time for the vaccine manufacturers to produce enough doses, and there's going to need to be prioritization over who will get those first doses when they become available." For the news above, please answer the following: (1). Does an externality exist? If so, classify the externality as positive/negative (or both). (2). If an externality exists, determine whether the Coase theorem applies. Explain why or why not. (3). If an externality exists and the Coase theorem does not apply, argue which of the government's tools are best suited to address the issue. List all the government tools that you have learned and explain.