Figure 7-4 Shows the Relationship Among the Various Costs of a Perfectly

Figure 7-4 shows the relationship among the various costs of a perfectly competitive firm. In the figure, when the market price equals $54, the firm:Figure 7-4

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.
E) should increase its output in order to charge a higher price.