Question

What is a bilateral monopoly?

Short answer

When there's just one supplier and one consumer during a market, it's known as a bilateral monopoly.

Step-by-step solution

Definition

Bilateral Monopoly: Bilateral monopolies are markets during which each consumers and sellers of issue inputs have monopoly power.

Explanation

When there's just one consumer and one seller during a market, it's known as a bilateral monopoly. once there's a little confined market with a restricted range of players, or once there ar many players however relocating consumers or sellers is simply too pricey, this atmosphere would possibly arise.

A coal (brown coal) mine and a lignite-based station ar 2 typical or notable samples of bilateral monopolies. as a result of coal shipping is expensive, the facility plant is found close to the mine. The mine features a monopoly on coal production, and also the station could be a market because the solely purchaser.