English

Name the market in which there is a single buyer and many sellers. Give an example.

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Question

Name the market in which there is a single buyer and many sellers. Give an example.

Long Answer
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Solution

A market in which there is a single buyer and many sellers is called a monopsony. A classic example of this structure is the government's purchasing of military equipment, such as fighter jets and tanks. In this scenario, the national government serves as the sole legal buyer in the country, while various private military contractors and aerospace corporations compete as sellers for the government’s purchasing contract.

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Chapter 5: Nature and Structure of Markets - QUESTIONS [Page 152]

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Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 5 Nature and Structure of Markets
QUESTIONS | Q 27. | Page 152
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