Part c)

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 (4 marks)

Part d)

Refer to part C) above; certainly, Australian consumers will not be happy buying hand sanitizer from only a designated seller. Briefly explain the possible welfare implications 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? (4 marks)