What is a defining characteristic of a monopsony in the labor market?

A monopsony in the labor market is a situation where there is only one employer that hires workers in a particular area or industry. This means that workers have limited choices for employment, which gives the employer significant power to set wages and working conditions. For example, if a small town has only one factory, that factory can pay lower wages because workers have few other job options. As a result, the factory might offer less than what workers would earn in a competitive market, leading to lower overall pay for the workers. This characteristic of having a single dominant employer is what makes a monopsony unique and different from a competitive labor market.