Question
Assume now that the costs of shipping are so large that Australian consumers can buy hand sanitizers from only one designated seller in Australia through
Assume now that the costs of shipping are so large that Australian consumers can buy hand sanitizers from only one designated seller in Australia through both ebay and Amazon and there is no possibility of buying hand sanitizers in person in retail stores or any other online platforms. Explain with the help of a diagram whether this seller would be making a profit or a loss in the short run and in the long-run.
What graph would I use to explain this question, would I need to implement the AR and MR? Also I feel like this would relate to a duopoly but we haven't learnt about that in class yet so is there a way to explain this through the assumption that its a monopolistic market for both firms?
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