Overview
Monopsonies are an important concept in economics, representing a market structure where a single buyer holds significant power over many sellers. This unique dynamic can lead to wage suppression and reduced competition, impacting both workers and consumers. Understanding monopsonies helps in analyz...
Key Terms
Example: A large employer in a small town hiring all the available workers.
Example: A monopsonist can set lower wages due to lack of competition.
Example: In a monopsony, wages may be set lower than in competitive markets.
Example: Higher demand can lead to higher prices.
Example: A monopsony can dominate the local labor market.
Example: The retail market where multiple stores sell similar products.
Related Topics
Key Concepts
Market PowerWage SettingLabor MarketSupply and Demand