Assignment task:
Imagine that you are they mayor of a small town named Riverwood. The town's biggest employer is a large factory called Acme Products. The citizens of your town have complained to you because Acme Products is causing some negative externalities in the town. One negative externality is that Acme's factory produces a lot of smoke from its smokestacks. This is causing the air to smell bad and causing people to have breathing problems. The other negative externality is that the factory is causing traffic problems. There is only one gate by which cars can enter and leave Acme's property. This causes big traffic jams every time Acme has a shift change. And the bad traffic has led to a number of traffic accidents.
The citizens of Riverwood demand action! In your paper describe how you as the mayor will try to solve the pollution problem and the traffic problem Acme is causing. Please describe in detail THREE different things you will do to try to resolve the problems. Here are some questions to help inspire you: Will you pass laws or new regulations? Will you negotiate with Acme? Offer them incentives or penalties? Will you try to get the citizens of Riverwood change their behavior? If your solutions cost money, where will the money come from? Acme provides a lot of jobs, so you want to keep good relations with them. But, you need to address the concerns of your citizens.