The best time to log a forest is
A)when the trees have reached their maximum value
B)when the growth rate of the trees equals the interest rate
C)when the cost of cutting is minimized
D)when the trees have reached their maximum height

Question

Quizplus · Accepted Answer

The best time to log a forest economically is when the growth rate of the trees equals the interest rate. This is because at this point, the value of the trees' growth equals the opportunity cost of not having the money invested elsewhere, optimizing the return on the investment in the forest.

The Best Time to Log a Forest Is