What term refers to a market characterized by a single buyer?

The term that refers to a market characterized by a single buyer is "Monopsony." In a monopsony, there is one dominant buyer who has significant power over the suppliers, allowing that buyer to influence prices and control the overall terms of trade. This situation often arises in labor markets, where a single employer may dominate a local employment market, thereby affecting wages and working conditions.

In contrast, a monopoly involves a market with a single seller, monopolistic competition describes a market structure with many firms selling similar products, and duopoly involves two dominant firms in the market. Each of these concepts revolves around the dynamics of supply and demand but focuses on different scenarios regarding the number of sellers or buyers present. By understanding monopsony, one can analyze competitive behaviors and market strategies that emerge from having a solitary buyer in the marketplace.