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
Chapter1: Making Economics Decisions
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2. 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
C) Increase in the interest rate
D) Adding the habitat value function to the overall timber value function
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