QUESTION 9 A Fresh Tart in Madre Linda, California bakes delicious pastries. Pastry shops are a (perfectly) competitive business in Northern California. At its current production level, A Fresh Tart estimates the following for its average pastry: . Price: $4 . Average Variable Cost = $2 . Average Total Cost = $5 . Marginal Cost = $3 Based on this information and your knowledge of economics, which of the following should the bakery do? (Assume all cost curves have their typical u-shapes.) O Shut down immediately. O We need more information. Increase Production O Decrease production Keep production at the same level