Alocal college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. for the students of the college, the visual appearance of the campus is rival and non-excludable . thus, the visual appearance would be classified as a public good. suppose the college administrators estimate that the beautification initiative will cost $4,400. to decide whether the initiative should be undertaken, administrators conduct a survey of the college's 300 students, asking each of them their willingness-to-pay for the beautification project. the average willingness-to-pay, as revealed by the survey, is $11.

According to the stats, administration would not be willing to beautify the campus as the cost of the beautification is higher than the money that students are collectively willing to pay.

As per the survey, there are 300 students. Each of them is willing to pay $11. so collectively the money that can be raised is $3300. Where as the amount for the beautification of the campus is $4400. There is a gap of $1100. That administration would definitely not willing to pay. So they will decline the campus beautification initiative.

The administration would not take the initiative of campus beautification.

Given information:

The total number of students surveyed is 300.

Willingness to pay is $11.

The cost of beautification is $4,400.

The total revenue that would be raised:

Hence, a total of $3300 in revenue would be generated by the administration.

The difference between cost and revenue would be computed by:

Hence, the cost to implement the program would be more than the revenue earned, which would incur a loss of $1100 to the college. Thus, college would not go for campus beautification.

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