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Question
Observe the relationship of the first pair of words and complete the second pair.
Single seller in the market : Monopoly
Single buyer in the market : ______
Options
Duopoly
Monopolistic
Monopsony
None of these
Solution
Single seller in the market : Monopoly
Single buyer in the market : Monopsony
Explanation:
A monopsony is characterised by a single buyer in the market, comparable to a monopoly involving a single seller. Due to a lack of competition from other purchasers, the monopsony buyer has great power over the purchase price and terms.
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| Column I | Column II | ||
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| (iii) | Monopolistic Competition | (C) | Single seller |
| (iv) | Oligopoly | (D) | Homogeneous products |
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