Question
The costs to the buyers on shopping by using online platforms is zero while the costs to the sellers in participating in these online markets
The costs to the buyers on shopping by using online platforms is zero while the costs to the sellers in participating in these online markets are almost zero (and negligible relative to the large sales volume). The costs of exiting these market platforms for sellers is zero. Assume that the costs of shipping and transactions costs are zero and let us consider the product hand sanitizers in an online global market. (context)
Question: Let us assume that hand sanitizer sellers in these online market platforms are making a profit in the short-run. Show this situation using a diagram. Consider the entire global market in this case. Now, explain with the help of another diagram the adjustments that may occur in this market in the long-run.
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