Final answer:
A Monopsonist is the term used for a single employer in a community with significant market power, potentially leading to lower wages. A bilateral monopoly is when this monopsony negotiates with a union, affecting wage and employment outcomes based on which side negotiates better.
Step-by-step explanation:
Monopsonist term is used in economics for any single employee in a area. In a monopsony, the single employer has significant market power due to the absence of competition in hiring. As a result, they can set wages lower than in a competitive market, as employees have limited options and must generally accept the offered wage. A classic example of this is a single coal company in a mining town. However, a bilateral monopoly situation occurs when a union, which has monopoly power over the supply of labor, meets a monopsony, the single employer with market power over wages and employment. In this case, the outcome for equilibrium wage and employment levels is indeterminate and depends on the negotiation between the union and the monopsonist.