When a union faces a monopsony buyer, a _______ exists.
A) monopolistic monopsony
B) dual- monopoly
C) monopoly
D) bilateral monopoly

Question

Quizplus · Accepted Answer

When a union (a sole supplier of labor) faces a monopsony buyer (a single buyer of labor), a bilateral monopoly situation exists. This is because there is only one seller (the union) and one buyer (the employer), creating a unique negotiation dynamic.

When a Union Faces a Monopsony Buyer, a _______ Exists