When a firm chooses to shutdown, it is

A. making a good decision as long as the price it is getting is less than its average total costs.
B. making a good decision as long as the price it is getting is less than its average variable costs.
C. making a poor decision because it should always produce where marginal cost equals marginal revenue.
D. making a poor decision because it should always produce where average costs exceed average revenue.

Answer: B