Which of the following situations describes a monopsony?
A) You are an ice cream artist and several shops are hiring.
B) You are the only teleport technician in the world.
C) You are an accountant in New York City.
D) You are a college instructor and there is only one university within 300 miles of your permanent residence.
E) You are the only professional dog groomer in town.

Question

Quizplus · Accepted Answer

A monopsony is a market situation where there is only one buyer (employer) for a particular kind of labor or product. In this case, as there is only one university within a 300-mile radius, the college instructor has limited options for finding employment, giving the university some degree of monopsony power.

Which of the Following Situations Describes a Monopsony