What is meant by the term monopsony? Under what circumstances do monopsonistic conditions arise in ...

A monopsony is the sole buyer of labor services in a labor market.  Classic examples of monopsony are a single employer in an isolated geographic area such as a coal mine or a mill.  Monopsony can exist in occupations.  For example, again assuming a relatively small town that is somewhat geographically isolated, there may be a single school system that hires teachers or a single hospital that employs nurses.  Monopsonistic conditions exist when the labor supply curve faced by an individual employer is upward sloping rather than perfectly elastic. The labor supply curve slopes upward when workers aren't completely mobile and find it costly to change jobs.