A local bakery produces two types of pastries: croissants and muffins. During a particular week, the bakery notices that the total revenue from croissants is consistently higher than the total cost of producing them, while muffins have a lower total revenue than their production cost. Given that the bakery wants to maximize its profits, which strategy should the owner adopt based on the principles of finding optimal choices in economics?

To maximize profits, the bakery owner should focus on producing more croissants since their revenue exceeds production costs, indicating they are profitable. In contrast, muffins are not covering their production costs, leading to losses. The owner could consider reducing muffin production or even discontinuing them altogether to allocate resources to croissants, which are performing well. For example, if the bakery sells 100 croissants for $2 each, earning $200, but only sells muffins that cost $150 to make with only $100 in revenue, it makes sense to prioritize croissants. By making these adjustments, the bakery can improve its overall financial health and profitability.