MONOPSONISTIC Meaning and
Definition
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Monopsonistic refers to a market structure characterized by the presence of only one buyer or a dominant buyer in a particular industry or area, with many sellers or suppliers. It is a term derived from the combination of "monopoly" (a single seller) and "monopsony" (a single buyer). In a monopsonistic market, the buyer possesses significant market power and has the ability to influence the terms and conditions of trade, including the price of goods or services.
In such a market structure, the monopsonistic buyer has the advantage of extracting more favorable pricing and terms from suppliers who have limited alternative buyers or options. The buyer can essentially dictate the terms of trade and exert pressure on suppliers to offer lower prices, reduce quality, or provide additional services at little or no extra cost. This can disadvantage the suppliers, potentially leading to reduced profitability or exploitation.
Monopsonistic markets often arise in situations where there are high barriers to entry for potential competitors, extensive buyer power, or geographic limitations that prevent suppliers from easily accessing alternative markets. Monopsonistic practices are sometimes regulated to ensure fair competition, protect suppliers, and maintain market efficiency. Such regulations may include antitrust laws that aim to prevent market abuses, promote fairness, and maintain competitive market conditions.
Common Misspellings for MONOPSONISTIC
- nonopsonistic
- konopsonistic
- jonopsonistic
- minopsonistic
- mknopsonistic
- mlnopsonistic
- mpnopsonistic
- m0nopsonistic
- m9nopsonistic
- mobopsonistic
- momopsonistic
- mojopsonistic
- mohopsonistic
- monipsonistic
- monkpsonistic
- monlpsonistic
- monppsonistic
- mon0psonistic
- mon9psonistic
- monoosonistic
Etymology of MONOPSONISTIC
The word "monopsonistic" is derived from the combination of two terms: "monopsony" and the suffix "-istic".
1. Monopsony: The word "monopsony" originates from the Greek roots "mono-" meaning "one" and "opsonein" meaning "to buy". It was coined in the early 20th century by the economist Joan Robinson. A monopsony refers to a market situation where there is only one buyer or dominant buyer for a particular product or service. It is the buyer's equivalent of a monopoly, where there is only one seller.
2. -istic: The suffix "-istic" is commonly used in English to form adjectives. It is derived from the French suffix "-istique", which ultimately comes from the Latin "-isticus" or Greek "-istikos", both indicating "related to" or "characteristic of".
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