A market with many buyers but only one seller is called a?

• A. Monopoly
• B. Oligopoly
• C. Perfect Competition
• D. Monopsony

Answer: (A)

In a market where one firm dominates and can set prices because there are high barriers to entry and no close substitutes, that market structure is a monopoly. Here, having many buyers but only one seller gives that seller strong market power: with no competition offering alternatives, the seller can influence the price and output more easily than in a competitive market.

If you compare to other structures: perfect competition has many buyers and many sellers, so no single firm can set the price. A few sellers in the market describe an oligopoly, not one. A monopsony has one buyer and many sellers, which is the opposite situation of one seller and many buyers.