A market with one buyer and one seller is a
A)Bilateral monopsony.
B)Multiopoly.
C)Bilateral monopoly.
D)Multilayer monopoly.

Question

Quizplus · Accepted Answer

A market with one buyer and one seller is known as bilateral monopoly. This is because both the buyer and seller have market power and can influence the price and quantity of the good or service being traded. The seller acts as a monopolist, while the buyer acts as a monopsonist. This results in a situation where the price and quantity are determined through negotiation between the two parties, and there is no outside market to provide a benchmark for prices.

A Market with One Buyer and One Seller Is a