A situation where a union bargains with a monopsony employer is termed a
A) bilateral monopsony.
B) bilateral monopoly.
C) unilateral agreement.
D) bilateral agreement.

Question

Quizplus · Accepted Answer

A bilateral monopoly occurs when a market has only one supplier (monopoly) and one buyer (monopsony), such as when a single union (the sole supplier of labor) negotiates with a single employer (the sole buyer of labor).

A Situation Where a Union Bargains with a Monopsony Employer