Littleville was a river town consisting of farmers, a few merchants supplying goods and services, a few churches, a police station, a courthouse, and a community hall. All the people worked hard to earn money, but the money in the town simply circulated among the townspeople, with the merchants and city workers buying food from the farmers, the farmers buying goods and services from the merchants, and the farmers and merchants paying taxes, which paid the city workers. The town was poor, with little prospect for growth.

The city also had a sewage service. Each house had a sewer pipe that joined a larger pipe under the street. Each of the street pipes was connected to an even larger pipe that carried the waste to the river. And that was the end of the line. The waste dumped directly into the river.

Over time, the river became more and more polluted. Several town members, sickened by the foul river, urged Littleville leaders to build a sewage treatment facility, but the leaders said they would not spend the town's limited money on sewage; there were more important services to provide, like twice-weekly trash collection. After all, it was a very poor town.

• What was the problem in Littleville?
• What action did the town leaders take to solve the problem?
• What was the cost of the action?
• What was the benefit of the action?
• Describe any unintended consequences resulting from the action.
• In this case, were the unintended consequences costs, benefits, or both?

Create a diagram (fishbone or other) to determine the causes of the problem and contributing factors.

Complete the Managerial Economics Matrix-Analytical Lens: Public Economics Applications Download Managerial Economics Matrix-Analytical Lens: Public Economics Applicationsaligning the elements of the case to the course modules (The organization of the course serves as a decision-making process!).

please make the diagram