Short Run Production Decision in Perfect Competition

In a market characterized by perfect competition, firms are price takers, meaning they cannot influence the market price of their product. They can, however, influence their output level. Consider a scenario where a firm in a perfectly competitive market is currently producing 100 units of output and is experiencing an average total cost of $10 per unit. The market price for the product is $12 per unit. Given this information, how would the firm respond in the short run?