If the firm's lowest average cost is $52 and the corresponding average variable cost is $26, what does it pay a perfectly competitive firm to do if the market is $36?

	A.	Close because it is losing money.
	B.	Continue to operate at the same level of output but at a loss but less of a loss if it had shut down completely and had no income to cover fixed costs.In the long run,it will eventually shut down if market prices do not improve.
	C.	Take out a loan and hope for an improvement in market prices.
	D.	Reduce output so that MC is equal to $36 and continue to operate but at a loss but less of a loss if it had shut down completely and had no income to cover fixed costs. In the long run, the firm will shut down if market prices do not improve.