The Yoga Center pays $10,000 per month in fixed rent. If it has no clients and earns no revenue, it faces a loss equal to its fixed costs. According to the source, what should it do?

1. With zero revenue, any variable cost taken on, such as hiring teachers, only adds to the loss without anything to offset it. 2. The center should shut down in this scenario and incur only its fixed costs. 3. That fixed-cost loss of $10,000 is smaller than what the center would lose by also paying for teachers it cannot afford. 4. Raising the rent would only increase the fixed cost the center already cannot cover with revenue. _Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 8 "Perfect Competition", section 8.2 | How Perfectly Competitive Firms Make Output Decisions_