Bilateral Monopoly Exists When

question 180

Multiple Choice

Bilateral monopoly exists when

• A) there is either a monopoly or a monopsony in the market.
• B) there are two competing labor unions in a labor market.
• C) there is a monopoly and a monopsony in a market.
• D) a firm is both a monopolist in its output market and a monopsonist in the input market.

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Definitions:

Consumer Surplus

The difference between the maximum price consumers are willing to pay and the market price they actually pay.

International Trade

The trade of products, services, and funds across borders or territories of different countries.

Autarky Price

The price of a good or service within a country that is not involved in trade; the domestic price in the absence of international trade.

Autarky Price

The price of a good in a country when it is closed to international trade, reflecting the balance of domestic supply and demand.