What is a market situation whereby there is only one buyer of an item for which there is no goods substitute?

Solution(By Examveda Team)

The market situations described in the options relate to different types of market structures. Let's explain each option:

Option A: Monopsony
A monopsony is a market situation where there is only one buyer for a particular product or service, and there are multiple sellers. In a monopsony, the buyer has significant market power, and this can affect pricing and terms of trade. This option describes a situation where there is only one buyer, which matches the question's description.
Option B: Monopoly
A monopoly is a market situation where there is only one seller or provider of a product or service, and there are no close substitutes. This option does not match the description in the question, as it refers to a single seller, not a single buyer.
Option C: Oligopoly
An oligopoly is a market structure where a few large firms dominate the market, and there may be limited competition. This does not match the description in the question, as it is related to the number of sellers, not buyers.
Option D: Oligopsony
An oligopsony is a market situation where there are only a few buyers for a particular product or service, and there are multiple sellers. This option does not match the description in the question, as it refers to a limited number of buyers, not a single buyer.

So, the correct answer is Option A: Monopsony. A monopsony is a market situation where there is only one buyer of an item for which there is no good substitute.