Monopsony — Edexcel Past Paper Questions

‘Amazon.com, the giant online retailer, has too much power.’ It uses its market power to put a squeeze on publishers, in effect driving down the prices it pays for books. If a publisher refuses, Amazon may take action by ‘delaying their delivery, raising their prices, and steering customers to other publishers’. Evaluate the likely costs of a monopsony operating in a market such as book retailing.

One of two options in Section C — candidates answered this or the other.

3.4.6 Monopsony

With reference to Figure 2 and Extract A, discuss the possible impact of supermarket monopsony power on both food suppliers and consumers.

3.4.6 Monopsony

Examine measures the government might use to restrict the monopsony power of supermarkets.

3.6.1 Government Intervention · 3.4.6 Monopsony