In comparison to a competitive market,a monopsony generates
A) deadweight loss.
B) larger low-wage employment.
C) more high-wages jobs.
D) more output.

Question

Quizplus · Accepted Answer

In a monopsony market, there is only one buyer for the labor or goods, allowing the buyer to have significant market power and pay lower prices to suppliers or employees. This results in a reduction in the overall welfare of the market and thus generates deadweight loss.

In Comparison to a Competitive Market,a Monopsony Generates