Which of the following situations describes a monopsony?
A) Nicolette is an ice cream artist and several shops are hiring.
B) Francine is the only teleport technician in the world.
C) Fernando is an accountant in New York City.
D) Leslie is a college instructor and there is only one university within 300 miles of her permanent residence.
E) Leo is the only professional dog groomer in town.

Question

Quizplus · Accepted Answer

Monopsony refers to a market situation where there is only one buyer of a particular product or service. In this case, Leslie is the only college instructor within a 300-mile radius, making the university the sole buyer of her services.

Which of the Following Situations Describes a Monopsony