FIGURE 8-3 P Short-Run Marginal Cost $105 Average Total $88 Cost Average Variable $55- Cost 460 1675 600 Refer to Figure 8-3. When the market price equals $50, what action should the firm take? Continue operating temporarily despite an economic loss, because the firm is able to cover all of its variable O costs. Continue operating because the firm is making a profit. O Shut down. Continue operating temporarily despite an economic loss because the firm is able to cover a portion of its fixed O costs