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Identify the market having a single buyer and many sellers from the following: - Economic Applications

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Question

Identify the market having a single buyer and many sellers from the following:

Options

  • Monopoly

  • Monopsony

  • Perfect competition

  • Monopolistic competition

MCQ

Solution

Monopsony

Explanation:

In a monopsony market system, there is only one buyer, and hence that buyer has tremendous power over demand. Because there are so many vendors, the buyer can obtain significant bargaining power and determine their terms.

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