A bilateral monopoly is A. a market in which a firm is the single buyer of input
ID: 1156952 • Letter: A
Question
A bilateral monopoly is
A.
a market in which a firm is the single buyer of inputs and a monopoly seller of its product.
B.
a market in which a firm is the single buyer of inputs and unionized.
C.
a market in which there is a single seller of a product.
D.
a market in which there is a single buyer and a single seller of a product.
E.
a market in which there is a single buyer of a product.
Describe the equilibrium price and quantity that will result from a bilateral monooply.
A.
Because of competing market? power, the equilibrium price will be higher and the equilibrium quantity will be lower than in a competitive market.
B.
It is difficult to predict the equilibrium price and quantity that will result because neither the buyer nor the seller have bargaining power.
C.
Because of competing market? power, the equilibrium price and quantity will be the same as in a competitive market.
D.
It is difficult to predict the equilibrium price and quantity that will result because both buyer and seller have bargaining power.
E.
Because of competing market? power, the equilibrium price will be lower and the equilibrium quantity will be higher than in a competitive market.
Explanation / Answer
a) A bilateral monopoly is a situation where there are a single buyer and single seller of the product. The answer is "A". a market where the firm is a single buyer of input and a monopoly seller of its product.
b) "A"
In a bilateral monopoly, because of competing market power, the equilibrium price will be higher and the equilibrium quantity will be lower than in a competitive market.
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