What is a monopsony? Explain its three characteristics as applied to a labor market.

A monopsony is a market structure in which there is only a single buyer of a good, service, or resource. The three characteristics are: (1)there is only a single buyer of a particular type of labor, (2)the workers providing this type of labor have few employment options other than working for the monopsony, and (3)the firm is a "wage maker" because the wage rate it must pay varies directly with the number of workers it employs.