When a Forester Is Making a Long-Run Decision About Whether

question 121

Multiple Choice

When a forester is making a long-run decision about whether or not to exit an industry, the cost of the land used for the plantation:

• A)will be considered as part of the forester's fixed cost
• B)is treated differently than the cost of sawmill
• C)is not considered a sunk cost
• D)will be ignored as irrelevant

---

Definitions:

Percentage

A part or portion of a whole, expressed as a fraction of 100, used to quantify relative differences or changes.

Daily Interest

The interest amount calculated on the principal amount on a daily basis.

Exponential Notation

A mathematical way to write numbers using bases and exponents.

Arithmetic Operations

Basic mathematical processes including addition, subtraction, multiplication, and division.