Th3.6: ^^ Restrictions on Monopsony Power Flashcards
1
Q
How are monopsonists able to exploit suppliers?
A
by reducing prices
2
Q
How can the government prevent this?
A
by passing anti-monopsony laws which make certain practices illegal and can introduce an independent regulator who will force monopsonists to buy fairly
3
Q
What can be put in place for those who exploit their power?
A
fines and minimum prices may be introduced to ensure suppliers are paid a fair amount. self regulation can also be used but this is weak
