38) Consider the following statements when answering this question

Please provide, if possible sufficient/relevant graph, with detail explanation

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.