Now consider the long run. If the firm is at its loss-minimizing output, should it produce or shut down? The deciding factor is:

a. If average total cost is higher than price, then shut down.

b. If average variable cost is less than price, then shut down.

c. If average variable cost is less than price, then continue to produce.

d. If marginal revenue equals marginal cost, then continue to produce.

e. If marginal cost is less than average variable cost, then continue to produce.