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Originally coined by economist Joan Robinson to refer to markets with multiple sellers of a product but only one buyer, the term “monopsony” can also refer to markets where demand for labor is limited. In a product monopsony, the single buyer can force sellers to lower their prices. blank in a labor monopsony, employers can force workers to accept lower wages.
Which choice completes the text with the most logical transition?
Explanation
Choice C is the best answer. “Similarly” logically signals that the information in this sentence about a labor monopsony is similar to the information in the previous sentence about a product monopsony. In both types of markets, one party (an employer or a buyer) has the power to force another party (a worker or seller) to accept less money (for labor or products).
Choice A is incorrect because “earlier” illogically signals that the information in this sentence about a labor monopsony occurs earlier (in a chronological sequence) than the information about a product monopsony. Instead, it is similar to the information about a product monopsony. Choice B is incorrect because “instead” illogically signals that the information in this sentence about a labor monopsony is an alternative to the previous information about a product monopsony. Instead, it is similar to the information about a product monopsony. Choice D is incorrect because “in particular” illogically signals that the information in this sentence about a labor monopsony provides specific details elaborating on the previous information about a product monopsony. Instead, it is similar to the information about a product monopsony.