A local bakery operates in a perfectly competitive market and is currently selling its pastries at the market price of $3 each. If the bakery's average total cost per pastry is $2.50, what would be the most appropriate strategy for the bakery to maximize its profits in the short run?

In a perfectly competitive market, the bakery should continue to sell its pastries at the market price of $3 because it is making a profit on each pastry sold. Since the average total cost is $2. 50, the bakery earns $0. 50 for every pastry it sells. To maximize profits in the short run, the bakery should focus on producing as many pastries as it can sell at this price, as long as the price covers the average variable costs.