Consider a music publisher which has a large share of the world market. It commissions performers to produce music and sells recordings to consumers. In which markets does the publisher have market power?
A) The publisher has market power in the markets for performance and recorded music.
B) The publisher has monopsony power in the market for performance and monopoly power in the market for recorded music.
C) The publisher has monopoly power in the market for performance and monopsony power in the market for recorded music.
D) None of the above.

Question

Quizplus · Accepted Answer

The publisher has monopsony power in the market for performance because it is a major buyer of performances from artists. It has monopoly power in the market for recorded music if it controls a large share of the market, allowing it to influence prices and output.

Consider a Music Publisher Which Has a Large Share of the World