4. The condition for optimizing the management of a forest is given by: Δ = ( ) − + [1] Equation [1] can also be expressed as: Δ ( )− + = [2]
a. [5 marks] Explain clearly the meaning of equation [1]. b. [5 marks] Explain clearly the meaning of equation [2]. c. [4 marks] Explain with the aid of a well-labelled diagram how an increase in the discount rate will affect the optimal rotation period. d. [4 marks] Explain with the aid of a well-labelled diagram how an increase in the cost of harvesting a forest will affect the optimal rotation period. e. [4 marks] Explain with the aid of a well-labelled diagram how an increase in the price of timber will affect the optimal rotation period. f. [4 marks] Explain with the aid of a well-labelled diagram how the presence of positive externalities will affect the optimal rotation period.
details are below in the files
0 comments