In a bilateral monopoly, wages will be:

Question

Quizplus · Accepted Answer

In a bilateral monopoly, both the firm and the union have market power, which means that wages will be determined through negotiation between the two parties. The wages will be higher than what would be paid by a monopsonist firm because the union has bargaining power, but lower than what a union would demand in a perfectly competitive labor market. Therefore, the wages in a bilateral monopoly will be between the wages paid by a monopsonist and the wages demanded by a union.

In a Bilateral Monopoly, Wages Will Be