Which of the following statements about the behavior of firms in a perfectly competitive market is least accurate?
1) A firm experiencing economic losses in the short run will continue to operate if its marginal revenues are greater than its variable costs.
2) A firm that is producing less than the quantity for which marginal cost equals market price would lose money by increasing production.
3) If firms are earning economic profits in the short run, new firms will enter the market and reduce economic profits to zero in the long run.
4) None of the above.