What defines an oligopsony?

An oligopsony is characterized by a market structure where there are few buyers for a particular good or service. This limited number of buyers can exert significant influence over market prices and negotiating power, often leading to less favorable conditions for suppliers. In such scenarios, the small group of buyers can control the demand and impact the supply chain significantly, distinguishing it from other market forms like perfect competition or monopoly.

In contrast, a market with multiple products refers to the variety of goods available but does not address the buyer dynamics central to the definition of an oligopsony. A market dominated by a single buyer describes a monopsony, which differs fundamentally from an oligopsony, as there is only one buyer in that scenario. A competitive market with many buyers indicates a scenario more aligned with perfect competition, where no single buyer has significant power over the market. Thus, option C accurately reflects the essence of an oligopsony as a market with few buyers engaged with specific goods or services.