Back to Factor Markets

Lesson PreviewLesson 4 of 4 in this unit

5.4 Monopsonistic Markets

Part of Factor Markets in AP® Microeconomics. Read the opening section, then create a free account for the full interactive lesson, practice, and progress tracking.

Monopsonistic Markets

In a monopsonistic market, there is only one buyer of a factor of production, such as labor, while multiple suppliers exist. This unique structure gives the monopsonist significant market power, enabling it to influence the factor price.

Continue the full lesson in Stellar

Create a free account to unlock the remaining sections, checkpoints, course practice, and progress tracking for AP® Microeconomics.