Multiple choice general knowledge

When there is one buyer and many sellers in a market - what is this situation called?

  1. Monopoly

  2. Oligopoly

  3. Monotony

  4. Monopsony
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Monopsony is a market structure with only one buyer and many sellers - the reverse of monopoly (one seller, many buyers). Oligopoly has few sellers, while 'monotony' is not an economic term. This situation gives the buyer significant power to influence prices.

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