Question $14(1$ point$)$

A perfectly competitive firm produces $3,000$ units of a good at a total cost of $$36,000.$ The fixed cost of production is $$20,000.$ The price of each good is $$10.$ Should the firm continue to produce in the short run?

No$,$ it should shut down because it is making a loss.

Yes, it should continue to produce because its price exceeds its average fixed cost.

There is insufficient information to answer the question.

Yes, it should continue to produce because the firm's revenues cover the total variable cost of $$16,000.$