10 marker Flashcards
(4 cards)
1
Q
oligopoly
A
An oligopoly is a market structure in which a few firms dominate. When a market is shared between a few firms, it is said to be highly concentrated. Although only a few firms dominate, it is possible that many small firms may also operate in the market.
2
Q
monopsony
A
when a firm has market power in employing factors of production. A monopsony means there is one buyer and many sellers.
An example of a monopsony occurs when there is one major employer and many workers seeking to gain employment.
If there is only one main employer of labour, then they have market power in setting wages and choosing how many workers to employ.
3
Q
oligopoly diagram
A
4
Q
monopsony diagram
A
