10 min read
This study guide covers monopsony, a market with a single buyer. It explains key characteristics like Marginal Resource Cost (MRC) exceeding supply, the monopsonist's wage-setting power, and the impact on employment. The guide contrasts monopsony with perfect competition, provides graphing examples, walks through an AP exam problem, and offers practice questions and exam tips.
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Question 1 of 12
A market characterized by a single buyer of resources, like labor, is known as a...
Monopoly
Monopsony 💰
Perfect Competition
Oligopoly