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Question
Microeconomics
Posted 7 months ago
Which of the following describes a monopsony market?
Choose 1 answer:
A a few buyers, a few sellers
B one buyer and many sellers
(C) A few buyers, many sellers
(D) many buyers and many sellers
(E) one seller, many buyers
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Answer from Sia
Posted 7 months ago
Solution
a
Definition of Monopsony: A monopsony is a market structure where there is only one buyer and many sellers
b
Characteristics: In a monopsony, the single buyer has significant market power and can influence the price of goods or services. This is in contrast to other market structures where there are multiple buyers
Answer
B one buyer and many sellers
Key Concept
Monopsony Market
Explanation
A monopsony market is characterized by the presence of a single buyer and many sellers. This gives the buyer significant control over the market, allowing them to influence prices and terms of purchase.
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