Efforts are being made to develop an effective vaccine against Covid-19. Such a vaccine will have great economic and health significance. Vaccines are expensive, and pharmaceutical companies depend on revenues that at least cover development costs.

Assume that the pharmaceutical company VacFirst is the only company that can manage to develop a vaccine that works and that satisfies the authorities' requirements. Once developed, however, many other pharmaceutical companies will have the expertise to copy the invention and start production.

(a) World leaders have agreed that no one other than VacFirst should be allowed to sell the vaccine if they develop it. There are various reactions to such a ban on copy production. Some believe that the ban will lead to an unnecessarily high price of the vaccine and thus that only a small proportion of the world's population will have access to it. Others believe that the vaccine will not be developed if VacFirst is not given the exclusive right and thus allowed to set a high price (if they themselves want this).

How would you rate these two reactions in light of economic theory? Is one of them right and the other wrong? Illustrate your discussion and arguments using figures / models, where you explain the connection between the figures / models and the arguments.