Question: When there is only one buyer and one seller of a product, it is called ________ situation.
Options:
Public monopoly
Bilateral monopoly
Franchised monopoly
Monopsony
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.
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.