Page "Microeconomics" Paragraph 11

* If the price is between average total cost and average variable cost at the profit-maximizing output, then the firm is said to be in a loss-minimizing condition.

The firm should still continue to produce, however, since its loss would be larger if it were to stop producing.

By continuing production, the firm can offset its variable cost and at least part of its fixed cost, but by stopping completely it would lose the entirety of its fixed cost.