The correct answer is c) bilateral monopoly.
A bilateral monopoly exists in a market where there is a single buyer (monopsonist) and a single seller (monopolist). In this situation, both parties hold significant power—while the seller controls the quantity and price of the goods or services offered, the buyer controls the demand for those goods or services. This dynamic can lead to negotiation between the two parties since neither has a competitive alternative. Unlike a monopoly, which has multiple buyers but only one seller, or a monopsony, which has multiple sellers but only one buyer, a bilateral monopoly presents a unique scenario where both sides must come to an agreement on the price and quantity, often resulting in outcomes that differ significantly from a competitive market.