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  3. part ii problem solving use the following information for questions...

Question: part ii problem solving use the following information for questions...

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Part II: Problem Solving Use the following information for questions 1-2. Barbara works as the marketing manager for a bank. Her supervisor has asked her to begin a mailing campaign to bring in new customers. After conducting a study of the market and getting quotes on printing and postage, Barbara has compiled the below table of total costs and total expected revenues Total Number of Mailers Sent 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Total ExpectedMarginal Revenue $20,000 $25,000 $28,000 $29,500 $30,600 $31,300 $31,600 Marginal Benefit Total Cost $5,000 $5,500 $6,200 $7,100 $8,200 $9,500 $11,000 Cost (7 points) Assume that Barbara must order the mailers in bundles of 5,000. Calculate the marginal cost and marginal benefit of each bundle and fill in the values on the table above. 2. 3 points) How many mailers should Barbara order and send out? Why?

Use the following information for question Assume an economy which produces only two goods: bread and robots. Bread is consumed immediately, while robots help to produce bread in the future. The below table summarizes how much bread and how many robots the economy can produce if everyone is fully employed. A BCDEF GHI 0 40,000 75,000 105,000 130,000 150,000 165,000 175,000 180,000 BREAD ROBOTS 9,000 8,750 8,250 7,500 6,500 5,250 3,750 2,000 0 3. (5 points) Draw the production possibilities frontier for this economy and label each point.

(8 points) What is the opportunity cost of moving from point E to point D? Of moving from point H to point IP Show your calculations and explain what this number means. 4.

5. (3 points) Why is the opportunity cost different between these two sets of points?

6. (6 points) For each of the following production bundles, indicate if this level of production is INEFFICIENT, EFFICIENT, or INFEASIBLE. Explain. a. 8,000 robots and 130,000 loaves of bread b. 9,000 robots and 0 loaves of bread c. 4,000 robots and 120,000 loaves of bread

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