Monopsony is a market structure with a single buyer, which has significant control over the price of goods or services it purchases. It is the opposite of monopoly, which is a market structure with a single seller. While monopsony can exist in any market, it is commonly associated with labor markets where a single employer has significant bargaining power.

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Monopsony Is a

Question 32

Multiple Choice

Monopsony is a

A) market structure with a single seller.
B) market structure with a single seller and a single buyer.
C) market structure with a single buyer.
D) market structure that exists only in labour markets.
E) common feature of contemporary labour markets.

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