A firm operating in a perfectly competitive market is incurring economic losses but has minimized those losses. Assuming

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A firm operating in a perfectly competitive market is incurring
economic losses but has minimized those losses. Assuming its
average variable cost is less than its price, which of the
following must be true in the short run? (2 points)
The firm can increase output to decrease losses.
The firm's average revenue equals the marginal cost.
The firm can decrease output to reduce average total cost.
The firm's marginal cost exceeds its average total cost.
The firm's demand curve is downward sloping.