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What are the characteristics of Monopsony ?

Some points of the characteristics of monopsony are discussed below. Monopsony has both advantages and disadvantages for the buyers and sellers which is to be noted down. Monopsony is a type of imperfect market.

Characteristics :

  • Single large buyer
  • Resource ownership
  • Barriers to entry
  • No alternative buyer
  • Monopsony is a form of iperfect competition
  • Buyer buys material with lower price
  • Single buyer faces many sellers
  • Monopsony has the bargaining power in the market as there is no other buyer
  • Monopsony exists in both the product and labour markets
  • Also check out advantages and disadvantags of monopsony to know more about it.
  • The reduced cost of purchasing imput increases their profit margin
  • Some elasticity of labour or supplier

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What is Monopsony and its examples ?

Definition of Monopsony

Information on definition of monopsony and its examples is given below. Monopsony is a market condition in which a single buyer substantially controls the market as a major purchaser of services or goods offered by many sellers in the market. Monopsony is one of the important concept in economics but it has both advantages and disadvantages in the over all market structures. Monopsony also has imperfect market condition.

What is Market economy ? Advantages and Disadvantages of Market Economy

Check out Advantages and disadvantages of market economy (capitalism) given below. So let us find out some points on advantages and disadvantages to know more about market economy. This type of economy is nearly free fro governement interference, Economy is based on private ownership where individual control the production, distribution and sales of goods and services.