Monopsonistic Markets

Monopoly Power: Monopoly power refers to when a single seller has control over a particular market due to barriers preventing competition. In monopsonistic markets, buyers have monopoly power.

Market Equilibrium: Market equilibrium occurs when the quantity demanded equals the quantity supplied. In monopsonistic markets, the buyer's market power can disrupt this equilibrium and lead to inefficient outcomes.

Bargaining Power: Bargaining power refers to the ability of a party to negotiate favorable terms in a transaction. In monopsonistic markets, buyers have more bargaining power compared to sellers due to their market dominance.