ARE 175 UC Davis Socially Optimal Forest Rotations with Non Timber Values Problem

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Problem 3: Socially Optimal Forest Rotations with Non-timber values

Now suppose that the forest that you are considering to plant provides a non-timber value of sequestering carbon. Assume that the per-period value of carbon sequestration depends linearly on the volume of the forest and is equal to a(t) = vt. The rest of the questions are in the image.

Please give an explanation to your answer and make sure to answer every single question asked with detailed steps. Thank you so much.

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