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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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