monopsony

Meaning

A market situation in which there is only one buyer for a product or service, giving that buyer power to depress prices or wages.

Origin / Etymology

From Greek 'monos' (single) and 'opsonein' (to buy provisions).

Synonyms

single buyer buyer monopoly purchasing power demand-side dominance

Antonyms

monopoly competitive market open market many buyers

Example Sentence

"Farmers argued that a single procurement agency created a monopsony that left them with little bargaining power over prices."

🎯 UPSC Usage

Useful in GS Paper 3 answers on agricultural markets, APMC reforms, and labour economics where large employers suppress wages. Cite it in debates on minimum support price, gig-economy platforms, and the need to give producers alternative buyers.

Relevant Subjects

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