How Do You Spell MONOPSONY?

Pronunciation: [mˈɒnə͡ʊpsənɪ] (IPA)

The spelling of the word "monopsony" can be confusing as it is not a commonly used term. Monopsony is pronounced as "muh-nop-suh-nee" with the stress on the second syllable. It is a term used in economics to describe a market where there is only one buyer for a particular product or service, giving them significant bargaining power. Though monopoly and monopsony are similar terms, they describe opposite market conditions. Monopoly is a market where there is only one seller, while monopsony refers to only one buyer in the market.

MONOPSONY Meaning and Definition

1. Monopsony is an economic term that refers to a market structure in which there is a single buyer of a particular product or service, while there are multiple sellers. This means that one buyer has a significant degree of control over the price and quantity of the product or service in question. The concept is the opposite of a monopoly, where there is only one seller in the market.

   In a monopsony, the buyer possesses market power, allowing them to influence the terms of transactions with sellers. This control over the market can lead to lower prices being paid to suppliers, as the buyer can dictate terms more favorable to their own position. Moreover, due to the limited number of buyers in the market, sellers may face difficulties finding alternative buyers or negotiating better terms.

   The presence of a monopsony can distort the market equilibrium and result in inefficient outcomes. It can lead to reduced production levels, lower wages for workers, decreased investments, and hindered innovation. Monopsonies can often arise in certain industries where there are significant barriers to entry for potential buyers, such as government entities, large corporations, or exclusive procurement contracts.

   Governments may regulate or intervene in monopsonistic markets to prevent abuse of market power or to promote competition. Antitrust laws and regulations, as well as promoting the entry of new buyers into the market, can help mitigate the negative effects of monopsony.

Common Misspellings for MONOPSONY

• nonopsony
• konopsony
• jonopsony
• minopsony
• mknopsony
• mlnopsony
• mpnopsony
• m0nopsony
• m9nopsony
• mobopsony
• momopsony
• mojopsony
• mohopsony
• monipsony
• monkpsony
• monlpsony
• monppsony
• mon0psony
• mon9psony

Etymology of MONOPSONY

The word monopsony is formed by combining two Greek roots: mono meaning single or sole, and opsonia meaning purchase. Therefore, monopsony literally translates to sole purchaser.

Similar spelling word for MONOPSONY

• Monophysite.

Plural form of MONOPSONY is MONOPSONIES