In a monopsony labor market, what is the primary characteristic that differentiates it from a competitive labor market?

In a monopsony labor market, there is only one main employer for workers, which is different from a competitive labor market where many employers compete for workers. This single employer has significant power to set wages and can pay lower than what workers might earn in a competitive market. For example, if a small town has only one factory, that factory can offer lower wages because workers have fewer job options. In a competitive market, multiple businesses would drive wages up as they compete to attract the best employees. Therefore, the key difference is the level of employer power and the number of job opportunities available to workers.