Can you explain the difference between these two questions? Why is the 1st question's answer is not "shut down" while the 2nd questions answer is "shut down" Please explain step by step.

Question 1

Suppose a perfectly competitive firm's minimum average variable cost is $1 when it produces 50. If the price is $2 and

the firm's marginal cost is $2, the firm should

Select one:

a. continue to produce, but produce less than 50

b. continue to operate, but produce more than 50

c. shut down

d. continue to produce 50

Question 2

Suppose a perfectly competitive firm's minimum average variable cost is $3 when it

produces 50. If the price is $2 and the firm's marginal cost is $2, the firm should

Select one:

a. continue to produce, but produce less than 50

b. continue to produce 50

c. continue to operate, but produce more than 50

d. shut down