The condition for optimizing the management of a forest is given by: V= r[V(T) C] + rS [equation 1] , Equation [1] can also be expressed as: (v) / [V(T) - C + s] [Equation 2]

a. Explain clearly the meaning of equation [1].

b. Explain clearly the meaning of equation [2].

c. Explain with the aid of a well-labelled diagram how an increase in the discount rate will affect the optimal rotation period.

d. Explain with the aid of a well-labelled diagram how an increase in the cost of harvesting a forest will affect the optimal rotation period.

e. Explain with the aid of a well-labelled diagram how an increase in the price of timber will affect the optimal rotation period.

f. Explain with the aid of a well-labelled diagram how the presence of positive externalities will affect the optimal rotation period.