Asked by Alexia Keobangsy on Jun 23, 2024
Verified
In a market with a bilateral monopoly:
A) there is a single buyer and a single seller.
B) there are many buyers and a single seller.
C) there is a single buyer and few sellers.
D) there are a few buyers and many sellers.
E) there are a few buyers and a few sellers.
Bilateral Monopoly
A market structure consisting of only one buyer and one seller, mutually depending on each other.
- Differentiate between monopsony, monopoly, bilateral monopoly, and oligopsony market structures.
Verified Answer
MW
Michelle WrightJun 30, 2024
Final Answer :
A
Explanation :
In a bilateral monopoly, there is only one buyer and one seller. This creates a unique market structure where both parties have market power and must negotiate to reach a mutually beneficial agreement.
Learning Objectives
- Differentiate between monopsony, monopoly, bilateral monopoly, and oligopsony market structures.