Monopsonies A monopsony is a market in which there is a single buyer of a good/service. The monopsonist has buying/bargaining power in their market, which they can exploit to negotiate lower prices. They do this to maximise profits. Monopsonists exist is both product and labour markets. Where there is one buyer and many sellers. Examples: Amazon with books/e-books, Tesco with milk, Ryanair with airplanes, the NHS with prescription drugs. May occur due to: Geographic immobility The government being the sole employer Unemployment making people desperate Lack of information Monopoly power in selling products Costs and benefits of monopsonies: Benefits : The monopsonist benefits as they decrease their costs and increase their profits The consumers often benefit as monopsonists may pass on the lower costs in the form of lower prices. Costs : In a labour market - workers get...