Monopsony Flashcards
1
Q
Monopsony
A
Monopsony only exists when there is only one buyer in a market. Eg only one buyer for teachers in the UK which is the Education Department
2
Q
Who is Monopsonistic Markets controlled by?
A
It is controlled by the one buyer, similar to a monopoly where the market is controlled by the one firm.
3
Q
Pros and Cons of Monopsony
A
Pros;
The buyer can get goods at a lower price
Cons;
Suppliers will lose out due to a decrease in prices, often also being a barrier to entry in a monopsony market.
4
Q
Bilateral monopoly
A
When there are only one seller and one buyer in a market.
