Definition

A market condition where there is only one buyer for a product or service, while multiple sellers exist.

Example

In a monopsony, the single buyer has significant control over the price and supply of goods.

Conversation

Have you ever heard of a monopsony?

Yeah, I read about it in my economics class.

It's interesting how it affects the job market, right?

Definitely! It changes the dynamics between employers and employees.

Synonyms & Antonyms

Root Explanation

Monopsony → It is formed from "mono-" (meaning single or one) and "opsonia" (from Greek, meaning to purchase or buy). The word describes a market situation where there is only one buyer for a product or service.

Memory Tip

Think of 'mono-' meaning 'one' and 'opsonia' relating to 'buying' — this helps you remember that a monopsony is a market with a single buyer.

Visually Confused Words