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Term: Monopsony

Description:

A monopsony refers to a market structure in which there is a single buyer for a particular product or service. In this situation, the buyer has significant control over the price and quantity of the goods or services being traded. Monopsonies often arise when there is a lack of competition among buyers, allowing the dominant buyer to dictate terms to suppliers.

Senses:

Sense 1:

Noun: A market situation where there is only one buyer.

Example Sentence: The small town had a monopsony in the grocery market, with only one supermarket catering to all the residents' needs.

Related Products: Books on Monopsony in Economics

Sense 2:

Noun: The single buyer in a monopsony market.

Example Sentence: The government acted as the monopsony in the defense industry, procuring military equipment exclusively from a select few suppliers.

Related Products: Books on Government Monopsony

Sense 3:

Noun: The practice or ability of a single buyer to influence the price and market conditions.

Example Sentence: The company's dominant market position allowed it to exercise monopsony power, pushing suppliers to accept lower prices than they would in a competitive market.

Related Products: Books on Market Power and Monopsony

Sense 4:

Noun: A company or entity that possesses monopsony power.

Example Sentence: The multinational corporation was accused of being a monopsony, controlling prices and supply chains in the industry to its advantage.

Related Products: Books on Monopsony in Business

Usage:

Monopsonies can have significant impacts on markets and can distort pricing mechanisms. Understanding the nature and consequences of monopsony power is important for economists, policymakers, and businesses.