<p>I am not sure what you mean by a monopsony graph. If you mean a graph wherein you show that Marginal Factor cost is not equal to the inverse input supply curve, then you do not need the graph at all. The fact that <span class="math-container">$MFC(x) \neq w_x$</span> shows that the buyer has market power.</p>

<p>Not sure what you mean by having "more buying power". </p>

CC BY-SA 4.0
2019-04-07T11:43:07.507Z
2019-04-07T11:43:07.507Z
Giskard
<p>For instance, Tesco has more buying power over British farmers. How would I show this on a monopsony graph where Tesco has a surplus?</p>

<microeconomics>
How do I use a monopsony (product market) graph to show that a firm has more buying power over a supplier?
Nabil C
# How do I use a monopsony (product market) graph to show that a firm has more buying power over a supplier?

(Asked by: username_0 on 2019-04-07)

For instance, Tesco has more buying power over British farmers. How would I show this on a monopsony graph where Tesco has a surplus?

**Tags:** microeconomics


---

## 1 answers

### Answer by username_1 on 2019-04-07. Score: 0

I am not sure what you mean by a monopsony graph. If you mean a graph wherein you show that Marginal Factor cost is not equal to the inverse input supply curve, then you do not need the graph at all. The fact that $MFC(x) \neq w\_x$ shows that the buyer has market power.

Not sure what you mean by having "more buying power".


---

