Which of the Following Statements About the Competitive Environment Is

Multiple Choice

Which of the following statements about the competitive environment is TRUE?

A) In monopolistic competition a seller has a down-sloping demand curve due to the lack of any substitute products.
B) In pure competition, an individual firm is usually faced with a very inelastic demand curve.
C) Firms in oligopoly should avoid price cutting.
D) The industry demand curve in oligopoly is usually horizontal.
E) All of these statements about the competitive environment are TRUE.