1. In the short run, a perfectly competitive firm suffering a loss

a. will close if P < AVC

b. will shut down operations if P < MC

c. cannot leave the industry even if P < AVC

d. can sell off all its resources to comp

e. can raise the price to increase revenues

2. Monopolistic competition is best described as

a. many firms with some control over price, and some product differentiation

b. many firms with no control over price, producing identical products

c. a few firms with some control over price, producing highly differentiated products

d. a few firms with no control over price, producing similar products

e. a single firm producing all of the output for the industry, with strong control over price