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.
参考答案：C
解析：
Since Klement is selling soybeans, a common commodity, he is a price taker and therefore can not adjust the price. He should continue operating his business as normal as he is currently covering variable costs and part of fixed costs. In two years from now, he will be able to cover both fixed and variable costs and be able to make a substantial profit.