A monopsony is a market structure in which there is only one buyer of a particular product or service. This gives the buyer significant market power, allowing them to dictate the price at which they buy the product from suppliers. In contrast, a monopoly is a market structure in which there is only one seller of a particular product or service.

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A Monopsony Is

Question 25

Multiple Choice

A monopsony is

A) the only producer of televisions in Japan.
B) the only seller of a product in an industry.
C) the only buyer of a product in an industry.
D) the kind of music available before stereo.

Correct Answer: