In Travnia, an Industrial Country, the Government Controls Most of the Utilities

In Travnia, an industrial country, the government controls most of the utilities, including power and water supply. The bottled-water market, however, has four major players: Balk, Pentl, Valr, and Tidum. Each of the companies markets its product using a distinct branding strategy. In an attempt to gain a larger market share, Pentl reduces the price of its products by 10%. It expects to make up for the lost revenue from an increase in sales. Which of the following is true of this scenario?

A) The government's control of most of the utilities including power and water supply represents monopolistic competition.
B) The power supply industry in Travnia is oligopolistic in nature.
C) The competition in the bottled-water industry represents pure competition.
D) Pentl's current pricing strategy can be termed as predatory pricing.
E) A price war would erupt if the other firms reduced prices, too, and forced Pentl to reduce prices further.