Which of the following is FALSE regarding bilateral monopoly?
A) Bilateral monopoly is a market structure consisting of a monopolist and a monopsonist.
B) Bilateral monopoly is defined as a market structure in which a single buyer faces a single seller.
C) An example of bilateral monopoly is a state education employer facing a single teachers' union in the labor market.
D) The price outcome is easily determined.
Answer: D
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Answer the following statement(s) true (T) or false (F)
1. Use of a common property is nonrivalrous. 2. A nonexcludable good, once produced, can be made available to others at no additional cost. 3. Private markets tend to undersupply nonrivalrous goods because of free riding. 4. Once it has been produced, the efficient price for a nonrivalrous good is zero. 5. An HBO broadcast over cable television is rival in consumption but non-excludable.
Which of the following restrictions implies that investment exceeds private saving for a closed economy?
a. The economy has no government. b. The economy's government is running a budget deficit. c. The economy's government is running a budget surplus. d. No restriction is necessary; investment and private saving are equal for all closed economies.
Ceteris paribus, if more alternative forms of energy become available, we would expect the demand for gasoline to become:
A. more elastic. B. more inelastic. C. perfectly elastic. D. perfectly inelastic.
A situation where a consumer's willingness to use an item depends on how many others use it is
A) a positive-sum game. B) a network effect. C) price-leadership. D) a vertical merger.