Which of the following is not true about the wage level in a bilateral monopoly?
A) It is determined by negotiation.
B) It is below the wage where the marginal factor cost curve intersects the labor demand curve.
C) It is above the wage level where the marginal wage intersects the labor supply curve.
D) It is determined simply by supply and demand.

Question

Quizplus · Accepted Answer

In a bilateral monopoly, the wage level is not simply determined by supply and demand. It is set through negotiation between the single buyer and single seller, taking into account their respective bargaining power and alternatives to the agreement. Therefore, option D is the statement that is not true about the wage level in a bilateral monopoly.

Which of the Following Is Not True About the Wage