When the goods of competing companies are identical, consumers have no reason to prefer one product over the other so the demand curve for each manufacturer will be perfectly elastic

Each firm in a perfectly competitive industry

A) produces a good that is slightly different from that of the other firms. B) produces a good that is identical to that of the other firms. C) attains economies of scale so that its efficient size is large compared to the market as a whole. D) has control over at least one unique resource to separate themselves from their competitors. E) has an important influence on the market price of the good or service being produced.

Compared to the situation in which it sets a single price, a monopoly that price discriminates ________ its economic profit and ________ its output

A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) increases; does not change