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Cost Allocation in Efficient Multiple-Use Management: A Comment

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There is no need to allocate costs to outputs in order to decide upon the marginality of land for particular uses. Optimal land allocations may be based on the outputs and total costs of alternative strategies for each land unit. If the best allocation excludes an output, then that use is sub-marginal. Only this classification has economic meaning. Such classification is not permanent, but will depend on the relative values of outputs.
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Document Type: Journal Article

Affiliations: Senior Fellow, Resources for the Future Washington, D.C. RFF's Forest Economics and Policy Program, Supported by funds from the Ford Foundation, the U.S. Forest Service, and the Weyerhaeuser Company Foundation

Publication date: 01 July 1979

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