1. What are some sources of monopsony power? What determines the amount of monopsony power an individual firm is likely to have?
2. Why is there a social cost to monopsony power? If the gains to buyers from monopsony power could be redistributed to sellers, would the social cost of monopsony power be eliminated? Explain briefly.
3. How do the antitrust laws limit market power in the United States? Give examples of major provisions of these laws.
4. Explain briefly how the U.S. antitrust laws are actually enforced.