WORD OF THE DAY
In economics, a monopsony is where there are many sellers and one buyer. It’s the opposite of a monopoly, which is where there are many buyers and one seller. In fact, a monopsony is sometimes called “a buyer’s monopoly.”
The term monopsony was first used in print by economist Joan Robinson in 1933, from a combination of the Greek roots mónos, "single," and opsōnía, "purchase." A monopsony is not a healthy market because it often means a single employer (buyer) has a lot of available workers (sellers). An example of a monopsony is a mining town with only one employer, a coal company that has the power to pay workers low wages because there's no competition.
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