Asked by Chelianne Leata Miller on May 09, 2024
Verified
____________ are an example of a bilateral monopoly.
A) Auto workers and auto companies
B) Teachers in most large school districts
C) Aerospace workers and Boeing
D) All of these choices are examples.
Bilateral Monopoly
A market structure involving a single buyer and a single seller, leading to unique negotiation dynamics since both parties have significant market power.
- Distinguish between the concepts of pure monopoly, monopsony, and how they relate to labor unions and collective bargaining.
Verified Answer
ZK
Zybrea KnightMay 10, 2024
Final Answer :
D
Explanation :
A bilateral monopoly occurs when a market has only one supplier and one buyer. In the examples given, auto workers and auto companies, teachers in most large school districts, and aerospace workers and Boeing represent situations where there is a single large buyer (the employers) and a single large supplier of labor (the workers or their unions), fitting the definition of a bilateral monopoly.
Learning Objectives
- Distinguish between the concepts of pure monopoly, monopsony, and how they relate to labor unions and collective bargaining.