Consider the Following Statements When Answering This Question: I

Multiple Choice

Consider the following statements when answering this question: I. When a competitive industry's supply curve is perfectly elastic, then the sole beneficiaries of a reduction in input prices are consumers.
II) Even in competitive markets firms have no incentives to control costs, as they can always pass on cost increases to consumers.

A) I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) I and II are false.