monopsony

Our next task is to consider the change in the amount of a commodity purchased when the market changes from an indefinitely large number of competing buyers to a single buying agency. This may be described as the comparison between competitive and monopsony buying, just as the corresponding comparison for selling was called the comparison between competitive and monopoly output.

The result is different when the resource buyer is a monopsony. The monopsony firm is a single buyer, and therefore it faces the market supply curve.