A monopsonist is defined as a single buyer in a market, particularly referring to a firm that is the sole purchaser of a factor of production, such as labor. This gives the firm significant power over the price and quantity of the factor it purchases.

Solved

A Monopsonist Is a

Question 22

Multiple Choice

A monopsonist is a

A) firm with partial control over an industry.
B) firm operating in a regulated industry.
C) firm that is the single purchaser of a factor of production.
D) firm that competes for labor but sells its output in a noncompetitive market.
E) group of firms, much like a cartel, that restricts the demand for labor in a market.

Correct Answer: