Asked by Francesca Kivitt on Jun 24, 2024
Verified
When an employer that controls the demand for labor opposes a union that controls the supply of labor,it is called
A) an oligopoly.
B) an oligarchy.
C) a bilateral monopoly.
D) a monopsony.
Bilateral Monopoly
A market structure where there is only one buyer (monopsony) and one seller (monopoly), leading to unique negotiation dynamics.
Monopsony
A market in which a single buyer has no rivals.
- Pinpoint the hurdles facing labor organizations in the modern employment sphere.
Verified Answer
TL
Thabal LyricsJun 25, 2024
Final Answer :
C
Explanation :
When an employer controls the demand for labor and a union controls the supply of labor, it creates a situation of bilateral monopoly. This means that both parties have significant bargaining power, which may lead to negotiations and potential conflicts. The employer has a monopsony power due to its control over the demand, while the union has a monopoly power as it can control the supply of labor. This situation can result in a wage rate higher than the equilibrium wage rate in a perfectly competitive market.
Learning Objectives
- Pinpoint the hurdles facing labor organizations in the modern employment sphere.
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