Large manufacturing firms that buy many different parts or components

Large manufacturing firms that buy many different parts or components (e.g., auto manufacturers) can choose which parts to buy from other firms and which parts to make in their own factories.

These manufacturers may be able to use monopsony power to reduce the price paid to outside suppliers for parts that are: A) standard components for many manufacturers so that there are many buyers and sellers.
B) only used in their cars so that there is one buyer and a few sellers.
C) bought and sold in perfectly competitive markets.
D) none of the above

ANSWER

B