Refer to Exhibit 12-2. When the market price equals $54, the firm:
A.
ould continue operating temporarily despite an economic loss because the firm is able to cover a portion of its fixed costs.
C.
should continue operating temporarily despite an economic loss because the firm is able to cover all of its variable costs.
D.
should continue operating temporarily despite an economic loss because the firm is able to cover a portion of its fixed costs.
E.
should continue operating because the firm is making a profit.