Which of the following describes a monopsony market?

Choose 1 answer:
(A) many buyers and many sellers
(B) one seller, many buyers
(C) one buyer and many sellers
(D) a few buyers, a few sellers
(E) A few buyers, many sellers

Question

Which of the following describes a monopsony market?

Choose 1 answer:
(A) many buyers and many sellers
(B) one seller, many buyers
(C) one buyer and many sellers
(D) a few buyers, a few sellers
(E) A few buyers, many sellers

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Monopsony: A monopsony market structure is characterized by a single buyer and multiple sellers. ‖ ∻Answer∻ ⚹ (C) one buyer and many sellers ⚹ ∻Key Concept∻ ⚹ Monopsony Market Structure ⚹ ∻Explanation∻ ⚹ In a monopsony, there is only one buyer who has significant market power over the price due to the lack of competition among buyers. ⚹◊What are the potential effects of a monopsony market structure on wages and employment levels?⍭ Generate me a similar question◊

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