Use the following statements to answer this question: I. If the market supply is perfectly elastic, then a few buyers with monopsony power can achieve the same percentage mark-down in the purchase price as a pure monopsonist.
II) The deadweight loss associated with a monopsony declines as the market supply curve becomes more elastic.

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If the market supply is perfectly elastic, any buyer with monopsony power can achieve the same percentage mark-down as a pure monopsonist. Additionally, as the supply curve becomes more elastic, the deadweight loss from monopsony decreases because the quantity distortion is reduced.

Use the Following Statements to Answer This Question: I