Which of the Following Correctly Describes a Monopsony

question 54

Multiple Choice

Which of the following correctly describes a monopsony?

• A)A monopsony firm is the sole supplier of an input.
• B)In a monopsony market,two or more firms set output assuming the other's output is constant.
• C)A monopsony firm is the sole buyer in an input market.
• D)In a monopsony market,a group of firms collude to set prices.

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Definitions:

Paradox of Thrift

If everyone tries to save more, they will all end up saving less.

Consumption

The use of goods and services by households, which is a key component in calculating a country's Gross Domestic Product (GDP).

Fiscal Policy Measure

Government policies related to taxation and spending that are used to influence the economy, manage inflation, and stimulate economic growth.

Legislative Action

The process by which a legislative body enacts laws, including the proposal, debate, amendment, and voting on new laws or changes to existing laws.