What is the correct answer to this question? I thought it was shut down the firm but that is not the correct answer. Please explain step by step.

Question:

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