When the monopsony model is combined with the inclusive union model, the result is a case of
A) occupational licensing.
B) noncompeting groups.
C) bilateral monopoly.
D) institutional immobility.

Question

Quizplus · Accepted Answer

When the monopsony model, where there is only one buyer in a market, is combined with the inclusive union model, where the union represents all workers in the labor market, the result is a case of bilateral monopoly, where both the buyer and seller (in this case, the employer and the union) have market power and can potentially negotiate higher wages or prices.

When the Monopsony Model Is Combined with the Inclusive Union