Arrange the following steps in the correct order that a firm should follow to determine whether to continue production in the short run when facing economic losses due to a decrease in consumer income.

When a firm faces economic losses because consumer income has decreased, it must first assess its variable costs, which are costs that change based on production levels. Next, the firm should compare its revenue with these variable costs to see if it can at least cover them. If the revenue is higher than the variable costs, the firm may choose to continue production in the short run, as this can help minimize losses. For example, if a bakery has fixed costs for its location but can still sell enough bread to cover the costs of flour and labor, it might choose to stay open despite lower overall profits. However, if revenue does not cover variable costs, it may be better to temporarily stop production until conditions improve.