Explanation
Correct answer: C.
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).
Why the other choices are wrong
Choice A
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
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
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.