Asked by Samantha Hicks on Jun 27, 2024
Verified
A monopsonist will buy ________ units of input than a competitor, and will pay ________ per unit.
A) fewer; less
B) more; less
C) fewer; more
D) more; more
Monopsonist
A market condition where there is only one buyer for many suppliers, giving the buyer significant control over the market.
Input Units
The basic quantities or resources used in the production of goods and services.
Competitor
A firm or entity that competes within the same market, offering similar goods or services to the same customer base.
- Analyze the distinctions of market power exerted by monopolies versus monopsonies.
Verified Answer
TN
Thokozani NdlovuJun 30, 2024
Final Answer :
A
Explanation :
A monopsonist is a single buyer in a market with many sellers. Therefore, it can exercise market power and pay a lower price for inputs than in a competitive market. As a result, it will buy fewer units of input than a competitor, and pay less per unit.
Learning Objectives
- Analyze the distinctions of market power exerted by monopolies versus monopsonies.