GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Market with one buyer and one seller is called
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BilateralMonopoly
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Monopsony
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Monopoly
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None of the above
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Explanation:
Detailed explanation-1: -Bilateral monopoly is a market structure where there is only one buyer (monopsony) and one seller of a product (monopoly). When a labor union (monopoly in the supply of labor) faces a single large employer in an industrial town (a monopsonist), it would be an example of a bilateral monopoly.
Detailed explanation-2: -A bilateral monopoly is a market structure consisting of both a monopoly (a single seller) and a monopsony (a single buyer).
Detailed explanation-3: -Examples of Bilateral Monopolies A Monopsony would pay a wage of W2 and employ Q2 workers-where MRP = MC. A Trade Union could organised labour and bargain for higher wages of W3 – without causing a fall in employment.
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