A bilateral monopoly is a situation where a firm is
A) a monopoly in its product market and is a monopsony in its labor market.
B) the only employer of a resource and is acquiring that resource from a single supplier.
C) one of only two firms that produce a particular product.
D) the only buyer of a resource and also the only seller of a product.

Question

Quizplus · Accepted Answer

A bilateral monopoly occurs when there is a single buyer (monopsony) and a single seller (monopoly) in a market, such as a firm being the only employer of a resource and acquiring it from a single supplier.

A Bilateral Monopoly Is a Situation Where a Firm Is