To answer the questions below, you should consider the Australian electric motor vehicle market (consider electric vehicles only, not hybrid vehicle).

Questions a. Consider the market for electric vehicles in Australia. Briefly describe and define the market structure. Your discussion could address issues such as the number of sellers, product characteristics and the barriers to entry to this market. (5 marks) (recommended 100-150 words) b. In Australia, the Tesla supercharge stations only service Tesla vehicles due to a Tesla proprietary plug. Why would the Tesla company do that? (Hint: how do we expect this to impact on the demand for a Tesla car and the price it can charge for the car?). Carefully explain the impact of this strategy. Use a diagram as an aid to your explanation. (10 marks) (recommended 150 words) c. Now, assume that there are two types of consumers - business and average travellers. Business travellers have a high valuation of electric cars. However, average travellers have a low valuation of these cars (for simplicity, assume that there are only two car models: model 3 and model X). While Tesla knows the willingness to pay for each type of consumer, it cannot observe the type of any given traveller (that is, Tesla does not know whether a particular consumer is a business or average traveller). What pricing strategy would you now recommend? What conditions are required for your recommendation to be implemented? Provide intuition for your recommendation. (15 marks) (recommended 200 words) d. Now, suppose there are only two electric vehicle producers - Tesla and BMW. Using game theory, explain whether BMW and Tesla will design the same plug or different plug. What factors should the firms take into consideration? (15 marks) (recommended 200-250 words)