A developer of high-priced executive tract homes has offered you $1000 per acre for the 500 acres of Vermont countryside you inherited from your Aunt Prudence. The Vermont Land Trust makes a counter offer of $500 per acre for the development rights to the land. By selling off the development rights only, you get to keep title to the land, and can use it for commercial purposes so long as these uses don't involve clearing the land of its forest. You know that you can continue Prudence's maple sugar operations, and you understand that you can probably collect hunting fees annually from private individuals wishing to use your land.
A developer of high-priced executive tract homes has offered you $1000 per acre for the 500 acres of Vermont countryside you inherited from your Aunt Prudence. The Vermont Land Trust makes a counter offer of $500 per acre for the development rights to the land. By selling off the development rights only, you get to keep title to the land, and can use it for commercial purposes so long as these uses don't involve clearing the land of its forest. You know that you can continue Prudence's maple sugar operations, and you understand that you can probably collect hunting fees annually from private individuals wishing to use your land.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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