Anderson's Bakery sells apple pies in a perfectly competitive market. The market price is $12 per pie. The bakery produces 300 pies per month with a marginal cost of $7 per pie, an average variable cost of $5 per pie, and an average total cost of $7 per pie. In this scenario, Anderson is likely to:
a. increase the production of apple pies to maximize profit
b. decrease the production of apple pies but stay open.
c. continue to maintain current production levels to minimize losses.
d. shut down immediately to minimize losses.
c
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