मराठी

Why does a monopsonist have the power to act as a price-maker in the factor market?

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प्रश्न

Why does a monopsonist have the power to act as a price-maker in the factor market?

पर्याय

  • Sellers can easily find many other buyers

  • The government fixes all prices

  • The buyer is the only or main purchaser for that input

  • The product is available in unlimited quantity

MCQ
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उत्तर

The buyer is the only or main purchaser for that input

Explanation: 

Since the monopsonist is the main or only buyer for a specialised input, sellers depend on it and must accept the price it offers.

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