\f4. Costbenefit 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 V and V . Thus, the visual appearance would be classied as a public good. excludable Suppose the college administrators estimate that the beautication initiative will cost $61, nonexcludable ether the initiative should be undertaken, administrators conduct a survey of the college's 2,240 students, asking each of them thei for the beautication project. The average willingness to pay, as revealed by the survey, is $20. \fThe benet ofthe beautication initiative, as suggested by the survey, i- . Because the estimated benet is V than the cost, the college administrators v undertake the beautication initiative. student accurately. should not The calculation of the benet of tion initiative relied on the ability of the administrators to capture the true willingness to pay of each Which of the following scenarios would cause the survey used by the college administrators to yield misleading data on willingness to pay? Check all that apply, D Students believe they will eventually be charged their willingness to pay. D Students are surveyed at random, using conventional survey and data-gathering methods. The calculation of the benet of the beautication initiative relied on the ability of the administrators to capture the true willingness to pay of each student accurately. Which of the following scenarios would cause the survey used by the college administrators to yield misleading data on willingness to pay? Check al'J' that apply. D Students believe they will eventually be charged their willingness to pay. D Students are surveyed at random, using conventional survey and data-gathering methods