In a monopsony, how does the buyer's control over the market affect the marginal factor cost compared to a competitive market?

In a monopsony, there is only one buyer in the market, which gives that buyer a lot of power over prices and wages. This means the buyer can pay less for the resources or labor they need because there are no other buyers competing to offer higher prices. In contrast, in a competitive market, multiple buyers compete for the same resources, which usually drives prices up to a level that reflects the true value of those resources. For example, if a single factory is the only employer in a small town, it can set lower wages since workers have no other job options, leading to a higher marginal factor cost than if there were many factories competing for workers. Therefore, the buyer in a monopsony situation can control costs better than in a competitive market, leading to a lower marginal factor cost overall.