Focusing on a single rotation model with land sale, describe the impact of each of the following parameters on the length of the efficient rotation period. Will the optimal rotation period be shorter, longer or remain unchanged? A) Increase in costs B) Increase of the social costs of harvesting C) Increase in the interest rate D) Adding the habitat value function to the overall timber value function

Focusing on a single rotation model with land sale, describe the impact of each of the following parameters on the length of the efficient rotation period. Will the optimal rotation period be shorter, longer or remain unchanged? A) Increase in costs B) Increase of the social costs of harvesting C) Increase in the interest rate D) Adding the habitat value function to the overall timber value function

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter32: The Land Market And Natural Resources

Section: Chapter Questions

Problem 10E

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