What you know about Monopsony
It is a market which is totally
reverses the monopoly market. In this market, there is only one buyer available
for any goods and services. Not a single buyer interested in a particular goods
and services. For example, may be the consumer in the organized manners or any
government which ban other one or some-one who make a habit for a particular
thing.
In other words, we can say that it
is a market where only one buyer available to buy any-thing without any
competition & also there is a ban for new buyer to inter into the market.
Price will be fixing just similar to the monopoly market. In monopsony, adjust
the buyer behaviour in a manner where its marginal utility is equal to marginal
cost so that he maximum his marginal utility.
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| Monopsony market |
A monopsony set there equilibrium on
“X” where MU=MC, he want to buy “OY” quantity at “BY” price. In this way, a
monopsony set a marginal utility “ABXC”.
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