McqMate
| Q. |
Bilateral monopoly refers to the market situation of - |
| A. | two sellers, two buyers |
| B. | one seller and two buyers |
| C. | two sellers and one buyer |
| D. | one seller and one buyer |
| Answer» D. one seller and one buyer | |
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Explanation: In a bilateral monopoly there is both a monopoly (a single seller) and monopsony (a single buyer) in the same market. The one supplier tends to act as a mo-nopoly power, and looks to charge high prices to the one buyer. The lone buyer looks towards paying a price that is as low as possible. Since both parties have conflicting goals, |
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