In a labor market characterized by bilateral monopoly,the wage rate will:

A) be logically indeterminate.
B) be established at the level desired by the union.
C) be established at the level desired by the employer.
D) always be established at the competitive level.

In a labor market characterized by bilateral monopoly, both the employer and the union have bargaining power and can negotiate for wages and employment terms. The outcome of their negotiation will depend on their relative bargaining power and the willingness to compromise. Therefore, the wage rate cannot be determined by the market forces of supply and demand, and may result in an indeterminate level.