Monopsonistic input markets and monopolistic output markets are similar in that both generate:

Question

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Both types of markets generate prices that are not equal to opportunity costs. In a monopsonistic input market, the buyer (such as a firm) has market power and can pay a lower price for inputs than it would in a competitive market. In a monopolistic output market, the seller (such as a firm) has market power and can charge a higher price for outputs than it would in a competitive market. In both cases, the market price is set based on the bargaining power of one party in the market, rather than the true opportunity cost of the inputs or outputs.

Monopsonistic Input Markets and Monopolistic Output Markets Are Similar in That