When price is greater than average variable cost but less than average

When price is greater than average variable cost but less than average total cost at the profit-maximizing level of output, a firm should:

A) continue to produce the level of output at which marginal revenue equals marginal cost.
B) increase output to minimize its losses.
C) reduce output to the level at which price equals average variable cost to minimize its losses.
D) shutdown to minimize its losses.

ANSWER

A