Actually, there can be multi-level selection (MLS theory; cf. http://en.wikipedia.org/wiki/Group_selection#Multilevel_selection_theory) when there is competition between groups. In the same sense there is selection between individuals when there is competition between individuals, or the competition between genes popularized by Richard Dawkins.
This is the best solut...
"Would you prefer that one person be horribly tortured for fifty years without hope or rest, or that 3^^^3 people get dust specks in their eyes?
I think the answer is obvious. How about you?"
Yes, Eliezer, the answer is obvious. The answer is that this is a false dilemma, and that I should go searching for the third alternative, with neither 3^^^3 dust specks nor 50 years of torture. These are not optimal alternatives.