Which of the following is not a potential source of monopsony power?
A)many firms competing for the same input
B)strong attachments of individuals to their home towns
C)costs of transporting bulky material inputs
D)immobility of inputs

Question

Quizplus · Accepted Answer

Many firms competing for the same input implies a competitive market for the input, which would not give any single buyer monopsony power. The other choices could potentially give a buyer monopsony power. Strong attachments of individuals to their home towns could limit the available labor pool for a company in that area, giving them power over workers. Costs of transporting bulky material inputs and immobility of inputs could limit the number of potential suppliers for a buyer, giving them power over the input market.

Which of the Following Is Not a Potential Source of Monopsony