Monopsony is an important idea in economics but not often discussed in the media – indeed there were only six references to it in the Financial Times between 2003 and 2009!
What is monopsony power?
Examples of industries where monopsony power exists and persists:
Evaluating the economic welfare effects of monopsony power in markets
In evaluation it is important to remember some of the possible advantages from monopsony power:
Key evaluation point - it is often difficult to assess the strength of monopsony power
|RyanAir to buy 175 new aircraft|
Low-fare airline RyanAir is to buy nearly £10 billion-worth of new planes in a move that will create more than 3,000 jobs. The no-frills Irish carrier is purchasing 175 of Boeing's new 737-800 aircraft, which will be delivered over the period up to 2019. The new planes will allow RyanAir to grow its fleet to more than 400 aircraft, serving more than 100 million passengers a year across Europe by 2019.Source: News reports, June 2013
Have you seen the tutor2u YouTube channel? Subscribe now and never miss a revision video!
Add these revision guides and worked answers to your essential revision resources for AS & A2 Economics exams this summer. Our revision guides are brand new and bring your tired old...