Regarding Price-Level Policies

Multiple Choice

Regarding price-level policies:

A) meeting competition is the only sensible policy in monopolistic competition.
B) in an oligopoly situation, pricing "above the market" usually leads to an increase in profit.
C) a firm in pure competition may increase profit by pricing "below the market."
D) charging a lower price than seeming competitors may not mean that a firm is selling "below the market."
E) None of these alternatives is correct.