econ DISCUSSION/ESSAY

Takehome Quiz PART II DISCUSSION/ESSAY DUE: Friday 9/25/20 11:30pm 10 points Topic: How is the text below an application of our lectures so far. - Think microeconomically and discuss this excerpt from the perspective of our course. Analyze the changes and outcomes of what is happening in the market for Coronavirus swabs. Use the language of our lectures by applying concepts, terms, models we learned. Other additional instructions below. Please read the text March 2020.

“ Did you know that only two companies in the world make all of the swabs used for Coronavirus testing? One, Puritan Medical Products, is in the US and the other in Italy, at one point the epicenter of the deadly disease. Apparently, there are 65 different kinds of swabs but the Coronavirus test uses a specific one called the ‘Flocked swab’ and they are diverting production to those due to the crisis. “We were getting calls from everywhere about our ability to produce as many swabs as we possibly can. Hospitals, clinics, other countries, Global and other domestic government organizations, State governments, working groups. We are focusing on the flocked swabs “We are ramping up to produce and wrap a million swab a week that we need to distribute to the supply chains across the U.S. Hopefully we will be firing on all cylinders and getting as many wrapped as we possibly can”. After they are produced, and before they can be shipped, the swabs have to be sterilized and wrapped in paper. The company prints about 100,000 labels per day on six printers. But, they first have to be shipped to another company for sterilization and then back to Puritan, and then sent off for distribution. It isn’t as simple as making them and simply sending them out. So, it takes time. “At this rate, in one weekend alone, we may have to be ‘wrapping ‘and sending off more than two million swabs. At the same time, we can’t simply stop making the other medical devices our regular customers depend on. The Coronavirus swabs cannot be ‘instead of’. Puritan produces 1200 products including the 65 types of swabs. Puritan is extending its five-days-a-week schedule to six, running ‘at least’ 20 hours a day. The biggest challenge for Puritan, though, is a constant shortage of workers. Puritan is not a big- sized company and is located in a tiny town in Maine. New people don’t exactly move to our town, while older employees are retiring. We are continually looking for more machine operator and mechanics. The problem is made much worse by Trump’s ever stricter immigration policies. “I could use 60 people tomorrow”. President Trump faced criticism for not using the Defense Production Act as an emergency measure that could have mobilized certain unspecified facilities to increase production up to 20 million per month. “

Instructions: • Start your essay with this sentence: “The Coronavirus has had a significant microeconomic

impact on the market for testing swabs. “ • The discussion must be at least 400 words (not more than 700 words) Add word count at the end • Must use at least 7 microeconomic terms (underline in text). Avoid the very basic ones. • Typed/double space/ font 11

Advice: some tips while writing a draft: o Annotate as you read the article (write in margin concepts or connections you identify from our lectures) o Why not use the help writing techniques we talked about and sampled- Term It! (Do your write-up , or

summary then intentionally insert micro terms where they can fit to enhance your writing ) o Or do a Free Write.