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Monopsony - Meaning, Definition & English Examples

A monopsony is a market structure where there is only one buyer for a product or service, giving them significant control over prices and terms. It contrasts with monopoly, where there is only one seller.

monopsony

/məˈnɑpsəni/ /mɒˈnɒpsəni/

Definition:

A market structure with only one buyer controlling demand for goods or services.

Synonyms:

buyer's monopoly, single-buyer market, oligopsony

Part of Speech:

noun

Antonyms:

perfect competition, polypoly

Common Collocations:

monopsony power, labor monopsony, monopsony employer

Derivatives:

monopsonistic, monopsonist

Usage Tips:

Use "monopsony" to describe markets dominated by a single buyer, often in labor or resource contexts.

Common Phrases:

monopsony in action, facing a monopsony, breaking the monopsony

Etymology:

From Greek "monos" (single) + "opsonia" (purchase), coined in economic theory.

Examples:

  • 1. The factory faced a monopsony as it was the only buyer of local wool.
  • 2. A monopsony can suppress wages when one employer dominates the job market.
  • 3. Farmers struggle when a monopsony controls crop prices unfairly.
  • 4. Governments sometimes regulate industries to prevent harmful monopsonies from forming.

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