Question
Assume that the costs of shipping are so large that Australian consumers can buy hand sanitisers from only one designated seller in Australia through both
Assume that the costs of shipping are so large that Australian consumers can buy hand sanitisers from only one designated seller in Australia through both ebay and Amazon and there is no possibility of buying hand sanitisers in person in retail stores or any other online platforms.
Australian consumers will not be happy buying hand sanitizer from only a designated seller. Briefly explain the possible welfare implication of this situation. Now assume that the Australian government decides to intervene in this market. What possible measures can the government use to improve the welfare of Australian buyers?
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