Results for tag: "Monopsony"

A monopsony is an economic market structure in which there is only one buyer of a good or service. This buyer has the power to set the price of the good or service, as well as the quantity of the good or service that is purchased. This market structure is different from a perfectly competitive market, in which there are many buyers and sellers, and the price of the good or service is determined by the forces of supply and demand. In a monopsony market, the buyer has the power to set the wages of the workers, as well as the quantity of labor that is hired. This can lead to a situation in which the wages of the workers are lower than they would be in a perfectly competitive market. Examples of companies in the monopsony market include Walmart, Amazon, and Apple. These companies have the power to set the prices of the goods and services they purchase, as well as the wages of their workers. Show Less Read more