3.4 - Monopsony Impacts Flashcards
1
Q
What are the impacts of monopsony power on suppliers?
A
Prices, revenue + profit lost
PS falls
Worsening access to finance
Potentially forced out of business
May need to find new buyer
Cutbacks may be required
2
Q
What are the impacts of monopsony power on consumers?
A
Cheaper goods/services
Lower variety
Benefit may not be passed on
Suppliers saving - poorer quality
3
Q
What are the impacts of monopsony power on employees?
A
Lower wages
Less employment - More responsibility
Less alternative opportunities
4
Q
What are the impacts of monopsony power on employees of suppliers?
A
Wage cuts
Job losses
Poorer working conditions
