Which market is characterized by a small number of large buyers who control all purchases and therefore the market price of a good a service ?
Correct answer: C. Oligopsony
- A. Oligopoly
- B. Grey market
- C. Oligopsony
- D. Green market
Explanation
An oligopsony exists when a small number of buyers dominate purchases from many sellers and can influence the price. Oligopoly is the corresponding structure on the seller side.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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