Mike's Pastry is a popular bakery in Boston, Massachusetts known for their cannolis. Bakeries (and cannoli shops in particular) are a (perfectly) competitive business in Boston, Massachusetts. At their current level of production, Mike's Pastry estimates the following for its standard cannoli:

• P = $4
• Q = 150
• TVC = $650

Mike's Pastry also knows that they are currently operating at the point where Average Variable Cost is minimized. Given your knowledge of economics and using the given values above, which of the following should Mike's Pastry do?

(Assume all cost curves have their typical u-shapes.)

Group of answer choices

Keep production at the same level.

Increase Output

Decrease output

Shut down immediately.

We need more information.