7. The table below provides information about the growth of a pine forest in Georgia. The price of the harvested timber is $40 per cubic foot and the forest only provides timber benefits. Current annual increment Age (years) Volume (cubic feet) Mean annual increment 81.4 814 1,992 3,438 5,056 6,750 8,424 81.4 117.8 144.6 10 20 30 99.6 114.6 40 126.4 135 161.8 50 169.4 167.4 60 70 140.4 142.6 9,982 11.328 155.8 80 141.6 137.4 134.6 90 12,366 13,000 13,134 12,672 103.8 100 130 119.4 63.4 110 13.4 120 105.6 -46.2 (A) When should the forest be harvested if the objective is to maximize the average annual timber volume growth fl.e. biological rotation)? (B)What are two problems with using this rotation age to manage forest lands? C) Will this rotation age be longer or shorter than the rotation age thatmakimizes the present value of the total timber income over multiple rotations? Why?
7. The table below provides information about the growth of a pine forest in Georgia. The price of the harvested timber is $40 per cubic foot and the forest only provides timber benefits. Current annual increment Age (years) Volume (cubic feet) Mean annual increment 81.4 814 1,992 3,438 5,056 6,750 8,424 81.4 117.8 144.6 10 20 30 99.6 114.6 40 126.4 135 161.8 50 169.4 167.4 60 70 140.4 142.6 9,982 11.328 155.8 80 141.6 137.4 134.6 90 12,366 13,000 13,134 12,672 103.8 100 130 119.4 63.4 110 13.4 120 105.6 -46.2 (A) When should the forest be harvested if the objective is to maximize the average annual timber volume growth fl.e. biological rotation)? (B)What are two problems with using this rotation age to manage forest lands? C) Will this rotation age be longer or shorter than the rotation age thatmakimizes the present value of the total timber income over multiple rotations? Why?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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