alleryA market structure in which there is a single buyer of a product or factor service is known as:
AMonopoly
BMonopsony
COligopoly
DDuopoly
Answer & Solution
Correct answer: B. Monopsony
1. Monopoly describes a single seller, the opposite side of the market.
2. Monopsony describes a single buyer of a product or service.
3. It is mostly relevant to factor markets where one firm is the only buyer of an input.
4. So the correct term is monopsony.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 4 Unit III "Price-Output Determination under Different Market Forms", p.28_
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