Please help me understand the following exercise. especially the true or false question. Thank you

3. In the short run, a purely competitive firm should:

Select one:

a.continue to operate even at a loss, provided that it is covering its variable costs

b.continue to operate even if the price is less than its average variable cost

c.close down unless the price is above its average total cost

d.close down if it is incurring losses

13. Which of the following is correct for a firm in pure competition?

Select one:

a.Price and marginal revenue are always identical

b.Marginal revenue and average revenue are always identical

c.Price and average revenue are always identical

d.All of the above

15. A purely competitive firm maximizes its profits when it produces an output at which:

Select one:

a.the difference between total revenue and total cost is smallest

b.price equals total revenue

c.total revenue equals total cost

d.the difference between total revenue and total cost is greatest

17. Market characteristics that influence a firm's pricing and output behaviour constitute:

Select one:

a.influential characteristics

b.market structure

c.pricing structure

d.market mechanism

20. A firm in pure competition:

Select one:

a.can only sell a small fraction of its output without lowering the price

b.can increase profit whenever price is equal to marginal cost by increasing its output

c.always earns profits because pure competition is efficient

d.may earn profits or incur losses in the short run

26. If a purely competitive firm is producing an output where marginal cost equals price, it can increase its profits either by producing a larger quantity or by charging a higher price.

Select one:

a.TRUE

b.FALSE

27. A purely competitive firm can increase its total revenue by raising its price.

Select one:

a.TRUE

b.FALSE

28. The break-even level of output for a firm in pure competition occurs where the firm's demand curve is tangent to its average total cost curve.

Select one:

a.TRUE

b.FALSE

30. The short-run shutdown level of output for a firm in pure competition occurs where the firm's demand curve is tangent to the average variable cost curve at its minimum point.

Select one:

a.TRUE

b.FALSE

31. If total revenue is greater than total cost, then the firm is maximizing its profits.

Select one:

a.FALSE

b.TRUE