Multiple Choice
Exhibit

-Refer to Exhibit. When the market price equals $54, the firm:?should continue operating temporarily despite an economic loss because the firm is able to cover a portion of its fixed costs.
A) should shut down.
B) should continue operating temporarily despite an economic loss because the firm is able to cover all of its variable costs.
C) should continue operating temporarily despite an economic loss because the firm is able to cover a portion of its fixed costs.
D) should continue operating because the firm is making a profit.
Correct Answer:
Verified
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