Question

Differentiate between monopoly and monopsony.

Distinguish between monopoly and monopsony.

Answer 1

Sr. No.	Basis of Difference	Monopoly	Monopsony
1.	Meaning	A market with one seller and many buyers.	A market with one buyer and many sellers.
2.	Market Control	The seller controls the supply of the product.	The buyer controls the demand for the product or input.
3.	Price Maker Role	The monopolist sets the selling price.	The monopsonist sets the purchasing price.
4.	Product Side	Focuses on selling a good or service.	Focuses on buying a good, service, or factor input.
5.	Examples:	Electricity board in a city, Indian Railways (in routes).	A single large employer in a small town hiring workers.
6.	Power Over	Buyers or consumers.	Sellers or suppliers (e.g., workers, producers).