What type of market is characterized by a single buyer of an item with no goods substitute?

A market characterized by a single buyer of an item that has no good substitutes is defined as a monopsony. In this structure, the sole buyer exerts significant control over the price and quantity of the good or service offered in the market, as there are no alternative buyers that can compete for the suppliers’ goods. This power can influence supply conditions, wages, and other market dynamics significantly.

Monopsony is often seen in labor markets where a single employer dominates employment opportunities in a certain area or industry. For example, if a city has only one factory that hires workers in a specific sector, that factory has monopsony power over the labor market, as workers have no other options for employment.

To understand why this is the correct answer, it’s essential to visualize the distinctions between different market structures. A monopoly refers to a market with a single seller, not a buyer. An oligopoly consists of a few sellers that dominate the market, while an oligopsony involves a few buyers dominating the market. The defining feature in your question is the single buyer's role and the absence of substitutes, which clearly points to monopsony as the answer.