Overview
Monopsony is a unique market structure characterized by a single buyer who exerts significant control over prices and supply. This can lead to various economic implications, particularly in labor markets where wages may be suppressed due to the lack of competition among employers. Understanding mono...
Key Terms
Example: A company that is the only employer in a small town.
Example: If producing one more car costs $20,000, that is the marginal cost.
Example: The satisfaction from eating one more slice of pizza.
Example: The job market for teachers in a city.
Example: Higher demand for nurses can lead to higher wages.
Example: Monopoly, oligopoly, and monopsony are different market structures.
Related Topics
Oligopoly
A market structure with a few sellers dominating the market.
intermediatePerfect Competition
A market structure where many buyers and sellers exist, leading to optimal pricing.
intermediatePrice Discrimination
The practice of charging different prices to different consumers for the same product.
advancedKey Concepts
Monopsony powerMarginal costMarginal benefitLabor market