Monospony Flashcards
1
Q
What (3)
A
One BUYER in the market
Prevent new forms entering
Aim to profit maximise
2
Q
Specific example of monopsony (2)
A
NHS has a monopsony in uk healthcare market
Pay less for cancer drugs than a number of other high-income countries
3
Q
General examples (2+)
A
Amazon ps buying power in the retail book market
British sugar buys almost the entire sugar beet crop produced in the uk year
4
Q
When do monopsony’s exist (2)
A
A large enough buyer in the market to be able to change the price at which they buy from suppliers
The greater the monopsony power = the less able are suppliers to find other customers
