1 / 2

Review of slide 4 (MSY)

Review of slide 4 (MSY). slope of ray = average volume (column (3), p.222) slope of tangent = annual increase or marginal growth (column (4), p.222)

abbot-compton
Télécharger la présentation

Review of slide 4 (MSY)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Review of slide 4 (MSY) • slope of ray = average volume (column (3), p.222) • slope of tangent = annual increase or marginal growth (column (4), p.222) • Through the origin, draw a ray that is tangent to growth function. It has the maximum average volume (27.7 cu ft/yr) which equals marginal growth (30 cu ft/yr), in year 60 (MSY) • This yields the largest volume over 600 years

  2. Review of slides 6-8 (optimal rotation interval t*) • We maximize the present value of net benefits of the forest with respect to the time period of harvest • We wait to harvest until next year • We harvest when (V0 + ΔV – C + S)/(1+r) = (V0 – C + S) ΔV = (V0 – C + S)r MB of waiting (value of new growth) = MC of waiting (lost interest on total revenue or net benefits)

More Related