In a monopsony labor market, what is a key characteristic that distinguishes it from a competitive labor market?

In a monopsony labor market, there is only one main employer for a certain type of labor, which gives that employer more power over wages and hiring practices. This is different from a competitive labor market, where many employers compete for workers, leading to higher wages and better conditions for employees. For example, if a small town has only one factory that hires workers, that factory can set lower wages because workers have fewer job options. In contrast, if several factories were in the town, they would have to offer higher wages to attract workers. Thus, the key characteristic of monopsony is the lack of competition among employers, which affects how much workers are paid.