Bilateral Monopoly Exists When

question 214

Multiple Choice

Bilateral monopoly exists when

• A) a single buyer confronts a single seller.
• B) there are two monopolistic buyers trying to buy resources.
• C) two labor unions are trying to represent the same group of workers.
• D) a firm is both a monopoly in its output market and a monopsonist in its input market.

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Definitions:

Statute of Frauds

A rule of law that mandates specific contract types to be documented in writing and signed by the accountable party for them to be valid and enforceable.

Oral Agreement

A verbal contract in which the terms have been agreed upon through spoken communication, legally binding in many scenarios but harder to prove in court.

Specially Manufactured

Refers to goods that are custom-made to a buyer's specific requirements and specifications and are not easily sellable to others in the regular course of business.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by all parties involved, to be enforceable.