how monopsonies are caused
there are several scenarios where a monopsony can occur like a monopoly a monopsony also does not adhere to standard pricing from balancing supply side and demand side factors a monopsony can arise in a market that is geographically isolated or where transportation costs are high this can limit the number of potential buyers and make it difficult for competitors to enter the market this may also make it hard for market participants outside of the geographic region to ship goods into a physical area 