ESP 175

Task: Problem 1: Managing a Single Forest Rotation  You are the manager of a forest products company and you are considering whether to plant your land with a slow-growing species of tree. The harvestable volume of timber for a rotation length of T > 0 is Q(T) =ea-b/T . Suppose that you incur a fixed cost of D at the beginning of a rotation (e.g., converting/clearing the land, planting the trees, etc.). Let p be the net benefit per-unit volume of

22 Other / Other University Of California, Davis / ESP 175 18 Nov 2020