The Market in Which There Is Only One Buyer of an Input

question 13

Multiple Choice

The market in which there is only one buyer of an input and one seller of the input is called a

• A)double monopsony.
• B)double monopoly.
• C)biopoly.
• D)bilateral monopsony.
• E)bilateral monopoly.

---

Definitions:

Pareto Optimality

A situation where resources are distributed in such a way that improving the situation of any single person would lead to the detriment of at least one other person.

Voluntary Exchange

An economic transaction where parties trade goods or services by mutual agreement without coercion.

Maximizing Profits

The process or strategy of adjusting production or operation dimensions to achieve the greatest possible financial return.

Potentially Efficient

A situation where a system or process has the capability to achieve optimal productivity, but currently may not be doing so.