John Klement is a soybean farmer who harvests 125000 bushels of soybeans annually. Klement’s fixed costs are $ 200000 and his variable costs are $ 5 per bushel. Soybeans are currently priced at $ 5.35 per bushel. Based on his estimates, Klement sees soybean prices being relatively stable for the next two years, then increasing to $7.00 per bushel due to increased demand from Japan. What action should Klement take Klement should:()
A. shut down for two years and then restart his business.
B. cut his production by 50% for the next two years and then resume full production.
C. continue operating his business as usual.