Marginal costs consist of the sum of the additional interest foregone on the revenues from harvest and the rent foregone on the land. As in any other situation, the optimal rotation occurs at the point at which marginal revenues equal marginal costs. A decrease in the market price of timber. The Effect of Including Non-harvest Benefits 1. Non-harvest benefits include watershed and wildlife protection, and recreation.
Total benefits equal the sum of harvest and non-harvest values.
Consideration of non-harvest benefits can alter the result described in C above. The Multiple Use Sustained Yield Act of 1960. The U.S. Forest Service is suppose to manage forests in such a way that net benefits are maximized. V. Below-Cost Timber Sales A. Costs associated with forest management, such as the construction of roads, are usually not considered when making management decisions such as whether to allow harvesting of timber and what fee to charge timber companies that want access to the forest B. Graphical analysis of the efficient amount of timber harvest. Assume marginal revenue is constant.