Word of the day: Monopsony

Monopsony

[mə-NAHP-sə-nee]

Part of speech: noun

Origin: Greek, 1930s

(Economics) A market situation in which there is only one buyer.

Examples of monopsony in a sentence

"The conglomerate used questionable tactics to create this monopsony. "

"I learned about the unique circumstance of a monopsony in my economics class today."

About Monopsony

This word stems from the Greek suffix “mono-,” meaning “one,” and the Greek “opsōnein,” meaning “buy provisions.”

Did you Know?

“Monopsony” can be easily mistaken with “monopoly,” but they have somewhat inverse definitions. While a “monopsony” is a market situation in which there is only one buyer of a good or service, a “monopoly” is a situation in which there is only one producer of a good or service. Economic theory proposes that monopsonies can lead to lower wages for workers because they are paid less than their marginal revenue product.