Question

In which of the following satisfies the conditions for a monopsonistic market?

A Single seller and infinite buyer Correct Answer Incorrect Answer
B Few buyers and a single seller Correct Answer Incorrect Answer
C Infinite buyers and sellers Correct Answer Incorrect Answer
D Single buyer and infinite seller Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Monopsony : A monopsony occurs when a fi rm has market power in employing factors of production (e.g. labor).

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