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:

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume.

Trade-In Allowance

The amount credited to the buyer by the seller when the buyer trades in an old item towards the purchase of a new item.

Retain Or Replace

A decision-making process regarding whether to keep an existing asset or replace it with a new one, considering aspects such as costs, benefits, and performance.

Relevant Cost

Costs that should be considered when making a decision because they will affect the future and they differ among alternatives.