What term is used to describe a market situation with only one buyer of a resource or service?

The term that describes a market situation with only one buyer of a resource or service is "monopsony." In a monopsony, the single buyer has significant market power, allowing them to influence the price and quantity of the resource or service. This is different from a monopoly, where there is only one seller in the market, controlling the supply of a good or service.

In a monopsonistic market, the lack of competition among buyers can lead to lower prices for resources, which can negatively impact suppliers who may have limited options for selling their goods. The concept highlights the importance of buyer power in determining market dynamics and pricing strategies.

Understanding monopsony is crucial for analyzing labor markets and industries where a single employer dominates, as it can lead to unique economic behaviors and outcomes that differ significantly from those found in markets characterized by more competitive structures, such as perfect competition, or from those dominated by a single seller.