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Viktor [21]
3 years ago
15

True/False

Business
1 answer:
emmasim [6.3K]3 years ago
4 0

Answer:

True

Explanation:

Bilateral monopoly is a type of market structure in which there is conventionally one seller (monopolist) and one buyer (monopsonist) on it. In other words, a bilateral monopoly is a monopoly limited by monopsony, or, conversely, monopsony limited by a monopoly. A typical example of a bilateral monopoly in developed economies is the labor market in single-industry towns with one town-forming enterprise that makes labor demand and one well-organized and strong the union selling it. Another example is the only bakery in the village that uses flour produced by a single flour mill as a production resource. In a bilateral monopoly, there is a situation in which neither a monopolist nor a monopsonist can force a partner to behave like a completely competitive market entity using market methods. Therefore, the final conditions in a bilateral monopoly are determined by the relative ability of its subjects to bargain.

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