Identify the Truthfulness of the Following Statements

Multiple Choice

Identify the truthfulness of the following statements.
I. In perfectly competitive markets there are no externalities. That is, actions of decision-makers on each others' well being do not extend beyond those effects transmitted by prices.
II. Partial equilibrium analysis determines equilibrium in a single market, taking the prices and outputs of other markets as fixed.

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