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    What is the meaning of the term ‘monopsony’?
    Question

    What is the meaning of the term ‘monopsony’?

    A.

    It is a form of market with many sellers but only one buyer, who is in a position to dictate terms to the sellers

    B.

    It is a form of market with one seller, but many buyers and buyer have no choice

    C.

    It is a form of market where there are many sellers and many buyers and both have multiple choices

    D.

    It is a market in which there are two sellers and may buyers having limited choices

    Correct option is A

    The term Monopsony defines A form of market with many sellers but only one buyer, who is in a position to dictate terms to the sellers.
    Monopoly is a form of market with one seller but many buyers and buyer have no choice.
    *Perfect competition is form of market where there are many sellers and many buyers and both have multiple choice.
    *Duopoly It is a market in which there are two sellers and many buyers having limited choices.

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