Assume a monopolistically competitive firm faces the following situation: P=$20; output =13,000 units: MC=$16;ATC =$22;AVC=$15; and MR=$16. Which statement BEST describes the firm's situation? The firm is earning a normal profit, indicating that the market is likely in a long-run equilibrium. The firm is minimizing its losses. The firm would minimize its losses by increasing its output. The firm would maximize its profit by decreasing its output.