Producer surplus is reduced with monopsony because

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    market output is lower than with perfect competition, and so producer surplus is lost as a result of the lost output.
     price is lower than with perfect competition and so producer surplus is reduced and consumer (buyer) surplus is increased.
     market output is higher than with perfect competition but prices are lower so consumer (buyer) surplus is increased and producer surplus is reduced.
     Both 1 and 2.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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Both 1 and 2.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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