The Stay-Dry Company Monopolizes the Sale of Umbrella Hats

The Stay-Dry Company monopolizes the sale of umbrella hats. The company is currently setting marginal revenue equal to marginal cost and selling 2,500 umbrella hats at a price of $40 each. Total costs for the company are $180,000 of which fixed costs are $90,000. You are hired as an economic consultant to this company. You should advise this monopolist to

A) shut down in the short run and exit the industry in the long run.
B) produce in the short run and expand capacity in the long run.
C) produce in the short run but exit the industry in the long run if conditions do not change.
D) shut down in the short run but expand capacity in the long run if conditions do not change.