Economics A-Level
Monopsony
What Monopsony means in Economics A-Level, as defined for AQA.
Definition of Monopsony
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Reference: AQA
A situation where employers possess power as dominant buyers of labour, allowing them to act as wage makers rather than wage takers.
Topics that use Monopsony
- The determination of relative wage rates and levels of employment in perfectly competitive labour markets (AQA A-Level)
Related terms
- Imperfect information
- Labour immobility
- Labour markets
- Marginal revenue product
- Market equilibrium
- Perfect competition
- Supply and demand
- Trade unions
Using Monopsony in the exam
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