Discuss two reasons why the optimal rotation interval achieved through a private market may differ significantly...

Discuss two reasons why the optimal rotation interval achieved through a private market may differ significantly from the socially optimal rotation

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The optimal rotation interval achieved through private market may differ significantly from socially optimum rotation for some reasons.

First, shorter rotation ages will results because social discount rate is lower than the private discount rate.

Second, incorrect rotation ages may obtained due to incorrect prices.Incorrect prices are the result of imperfect market.

Rahul Sunny answered 1 year ago

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