4.6 Monopsony Flashcards by Sam Heron

Q

What is a monopsony?

A

A market dominated by one buyer with negotiating power

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Q

Examples of firms?

A

NHS
Amazon
Supermarkets

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Q

Benefits of a monopsony?

A

Purchasing econ of scale
Higher profits
Lower prices
Improved value

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Q

Drawbacks of a monopsony?

A

Lower incomes for suppliers
Less choice
Higher prices

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