4. Cost-benefit analysis
A local 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 and . Thus, the visual appearance
would be classified as a public good.
Suppose the college administrators estimate that the
beautification initiative will cost $4,420. To decide whether the
initiative should be undertaken,...