Difference between revisions of "Monopsony"

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A monopsony is a monopoly by a buyer rather than a seller.  In other words, a monopsony is a market structure that has only one buyer of a [[good]] or service.
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If a monopsony wishes to buy an additional [[good]] or service, then it must raise the price for all of the goods to that level, in order to buy the additional one.
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[[category:economics]]

Revision as of 19:33, October 15, 2007

A monopsony is a monopoly by a buyer rather than a seller. In other words, a monopsony is a market structure that has only one buyer of a good or service.

If a monopsony wishes to buy an additional good or service, then it must raise the price for all of the goods to that level, in order to buy the additional one.