MONOPSONY EXPOITATION

The monopsony is similar to that of the monopoly where we find there is large quantity of seller and few quantity of buyer. It controls a large proportion of the market where there is only one controller of the firm and they can drive the price up and down accordingly.

EXAMPLE:

The Indian defence is one such example of monopsony market where they can be authorized to buy items like war tanks, aircrafts and marine structure. Like recently Indian Air force recently bought 37 Desalt Rafael from the French Air force.