A monopsonist is a firm that is the only purchaser of a particular good or service, such as a factor of production like labor. This gives the monopsonist a certain degree of market power and allows it to pay lower prices to suppliers of that good or service.

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A Monopsonist Is

Question 23

Multiple Choice

A monopsonist is

A) a firm with partial control over an industry.
B) a firm operating in a regulated industry.
C) a firm that is the single purchaser of a factor of production.
D) a firm that competes for labor but sells its output in a non-competitive market.
E) a group of firms, much like a cartel, that restricts the demand for labor in a market.

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