The optimal time to harvest is:
A)when the value of the crop is maximized.
B)when the rate of growth of the crop is maximized.
C)when the present value of the crop is maximized.
D)when the rate of growth of the crop is zero.

Question

Quizplus · Accepted Answer

The present value of the crop takes into account the revenue received from harvesting now, as well as the potential revenue from waiting to harvest in the future. By calculating the present value of the crop, a farmer can determine the optimal time to harvest to maximize their profits. Harvesting when the value of the crop is maximized (choice A) may not account for potential future revenue, while harvesting when the rate of growth of the crop is maximized or zero (choices B and D) may not take into account the optimal market conditions for selling the crop.

The Optimal Time to Harvest Is