When large oligopolistic firms negotiate with the unions of their employees, the resulting bargaining process closely resembles
A)perfect competition.
B)a dual labor market.
C)monopolistic competition.
D)bilateral monopoly.

Question

Quizplus · Accepted Answer

When large oligopolistic firms negotiate with the unions of their employees, it results in a bilateral monopoly where both sides possess some degree of market power. The firm has the power to set wages and working conditions, and the union has the power to strike or bargain collectively. This type of negotiation creates a situation where both sides must compromise to reach an agreement, which is characteristic of bilateral monopoly.

When Large Oligopolistic Firms Negotiate with the Unions of Their