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3. The local Urban Ministry offers shelter to the local homeless persons and food to families in need. Given its level of funding, the Urban
3. The local Urban Ministry offers shelter to the local homeless persons and food to families in need. Given its level of funding, the Urban Ministry could offer enough shelter beds to sleep 100 people per night, but then they would have no funds left for feeding families. Alternatively, they could use all of these funds to feed 160 families per day if they provided no shelter services. Or they can provide some mixture of the two services. For every additional 32 families they feed, they can offer 20 beds fewer per night. They have chosen to split their funds to offer both services rather than solely meet either need. Over the past year, they have provided shelter for 50 people and food for 80 families, based on what they view as the current needs of the community. a) Draw a production possibility frontier (ppf) curve that illustrates their situation. b) Reductions in government funds and local charitable contributions will reduce Urban Ministry's budget by 25 percent in the coming year. How will the budget cuts affect their ability to deliver services to their clients? What choices must they make? How does the ppf graph illustrate these choices? c) A private consultant suggests that the Urban Ministry stretch their limited resources by shifting staff responsibilities so that they can better use volunteers from the community to help them serve those individuals and families in need. If they follow the recommendations of the consultant, they could increase the number of shelter beds and the number of families they feed by 20%. How would this reorganization of staff responsibilities affect their ppf? Would you recommend they make the change, given the information provided? Why or why not? d) Can the Urban Ministry meet the full needs of the local community as stated above? What must they do to be able to do so
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