A monopsony is a market characterized by:

Question

Quizplus · Accepted Answer

A monopsony is a market where there is only one buyer of a particular product or service, which gives them significant market power to negotiate lower prices from suppliers. Therefore, option B is the correct choice, as it describes the only buyer for an input in a monopsony market. Option A is incorrect because it refers to a monopoly, which is a market with only one seller of a product or service. Options C and D are also incorrect because they describe scenarios with more than one buyer, which is not characteristic of a monopsony.

A Monopsony Is a Market Characterized By