McqMate
| Q. |
Bilateral monopoly situation is |
| A. | when there are only two sellers of a product |
| B. | when there are only two buyers of a product |
| C. | when there is only one buyer and one seller of a product |
| D. | when there are two buyers and two sellers of a product |
| Answer» C. when there is only one buyer and one seller of a product | |
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Explanation: Bilateral monopoly is a market consisting of a single seller (monopolist) and a single buyer (monopsonist).For example, if a single firm produced all the copper in a country and if only one firm used this metal, the copper market would be a bilateral monopoly market. The equilibrium in such a market cannot be determined by the traditional tools of demand and supply. |
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