Asked by Trevor Debelak on May 20, 2024
Verified
Which of the following is most likely to be an example of monopsony?
A) The market for fast-food workers in a large summer resort town.
B) The market for card dealers in Las Vegas.
C) The market for Major League Baseball umpires.
D) The market for retail sales clerks in a major city.
Monopsony
A market condition where there is only one buyer facing many sellers, giving the buyer significant power over prices and terms of exchange.
- Familiarize oneself with the aspects of monopsony in the job market.
Verified Answer
RB
Ronil BonnetMay 22, 2024
Final Answer :
C
Explanation :
Monopsony occurs when there is only one buyer in a market. The market for Major League Baseball umpires is a good example because MLB essentially is the only employer for professional baseball umpires at that level, giving it significant control over wages and employment conditions.
Learning Objectives
- Familiarize oneself with the aspects of monopsony in the job market.