Hw question please help

Juan is operating a rm in a competitive market. The market price is $6.50. At his prot-maximizing level of output, his average total cost of production is $6.00, and his average variable cost of production is $5.00. Which of the following statements about Juan's rm is correct? ' 0 Juan is earning a prot since the price is above the average total cost 0 Juan is earning a loss but should continue to operate in the short run 0 Juan is earning a loss and should shut down in the short run 0 Without knowing Juan '5 marginal cost, we cannot determine whether he should stay in business or shut down