Each of the following companies except was once a monopsony. (LO5) a) General Electric c) R.J. Reynolds b) J. P. Stevens d) AT\&T

A monopsony is a market structure in which there is only one buyer of a particular product or service. In this situation, the monopsonist has significant purchasing power and can often dictate the price and supply conditions to the sellers.

a) General Electric: General Electric was a major conglomerate with a diversified range of products and services, including energy, technology, and finance. It was not a monopsony as there were other competitors in its various industries. c) R.J. Reynolds: R.J. Reynolds was a major tobacco company, known for its popular brands like Camel and Winston cigarettes. As a buyer of raw tobacco, it was once one of the few significant purchasers from tobacco farmers, which gave it monopsony power in that particular market segment. b) J. P. Stevens: J. P. Stevens was a textile company that, at its peak, was the second-largest in the United States. It was never in a monopolistic position, as numerous other textile manufacturers were competing in the market. d) AT&T: AT&T was a telecommunications company that held a virtual monopoly over U.S. telephone services before its breakup in 1984. As a telephone service provider, it was a monopsony in its purchasing of network equipment during that time, with limited competition in buying equipment from the suppliers.

Based on our understanding of these companies and their roles in the market, General Electric (a) and J. P. Stevens (b) were never monopsonies, as they had numerous competitors in their respective industries. Comparatively, R.J. Reynolds (c) and AT&T (d) both enjoyed monopsony power in specific market segments. Given that the question asks which of these companies was not a monopsony, the correct answer is: a) General Electric