Answer: See explanation
Explanation:
1. The return on investment for Osaka will be:
= (816000/10200000) × (10200000 × 2550000)
= 32%
The return on investment for Yokohama will be:
= (3200000/32000000) × (32000000/16000000)
= 20%
2. See attachment
3. Yokohama’s greater amount of residual income is not an indication that it is better managed. Since Yokohama Division is bigger than Osaka Division, it's expected that Yokohama will have a greater residual amount.
Jones should: d. Continue producing, but reduce output.
reduce output but should continue production.
<h3>Total costs and marginal costs</h3>
The market price per bushel is higher than average variable cost which means that Jones should continue the production.
Since market price and the and marginal costs per bushels is not the same or equal she should reduce her output because profit maximization requires that marginal revenue and marginal cost to be equal.
Therefore the correct option is D.
The complete question is:
Farmer Jones is producing wheat and must accept the market price of $6.00 per bushel. At this time, her average total costs and her marginal costs both equal $8.00 per bushel. Her average variable costs are $5 per bushel. In order to maximize profits or minimize losses in the short run, farmer Jones should Multiple Choice.
a. increase output
b. increase selling price.
c. produce zero output and close down
d. continue producing, but reduce output.
Learn more about Total costs and marginal costs here:brainly.com/question/17230008
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