In a bilateral monopoly with one buyer and one seller, the monopoly power of the seller and the monopsony power of the buyer tend to:

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In a bilateral monopoly, the seller has monopolistic power over the product they are selling, while the buyer has monopsony power over the quantity they are buying. These two powers tend to counteract each other, as the seller wants to sell at a higher price while the buyer wants to buy at a lower price. This leads to a tug-of-war between the two parties, with both trying to gain the upper hand in negotiations. Ultimately, the price and quantity agreed upon will depend on the bargaining power of each party.

In a Bilateral Monopoly with One Buyer and One Seller