You Own a Tract of Trees and Are Deciding Whether

question 31

Multiple Choice

You own a tract of trees and are deciding whether to harvest them now or next year.If you harvest them now,you can invest the proceeds and get a return of 5% on your investment.What should you do?​

• A)​Let the trees grow as long as their dollar worth increases by more than 5%
• B)Let the trees grow
• C)Cut down the trees,and sell them
• D)​Let the trees grow as long as their dollar worth increases by less than 5%

---

Definitions:

Changes in Rent

Variations in the lease price for rental properties due to factors like market demand, location, and quality of the property.

Demand and Supply

The basic economic principle that describes the quantities of goods and services that buyers are willing and able to purchase at various prices and the quantities sellers are willing to sell.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.

Firm's Demand

The total quantity of goods or services that a company anticipates selling at a certain price level within a specific time frame.