Identify the correct statement about a monopsony.
A) It happens when there is a monopoly on the demand side of the market.
B) It is not regarded as a violation of the antitrust laws.
C) It refers to the power of a large seller on the market share.
D) Monopsony power falls within §1 of the Sherman Act.

Question

Quizplus · Accepted Answer

The concept of monopoly refers to the power of sellers of a good or service. In some instances, the power is on the buying side, called monopsony power. A buyer having price and quantity power is said to have a monopsony on the buying or demand side of the market. Monopsony power falls within §2 of the Sherman Act and has been examined in courts much like monopoly power.

Identify the Correct Statement About a Monopsony