question archive 1)Bilateral monopoly exists when a
1)Bilateral monopoly exists when a
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1)Bilateral monopoly exists when
a. a firm is both a monopoly in its output market and a monopsonist in its input market
b. a single buyer confronts a single seller.
c. two labor unions are trying to represent the same group of workers
d. there are two monopolistic buyers trying to buy resources.
2)Which of the following is a characteristic of a monopoly market?
(a) Firm is a price taker.
(b) easy entry
(c) one firm
(d) many firms
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1)The correct option is b. a single buyer confronts a single seller.
A bilateral monopoly is a special case of a monopoly where there are only one producer and one buyer in the market (a monopsony). In this situation, the monopolist wants to charge as high a price as possible while the buyer wants to pay as low a price as possible.
2)
Option (c) one firm is correct.
There is an existence of only one company in a model of monopoly. Other firms cannot exist in this market as they face legal and technical obstacles.
