The U. S. government bought 112,000 acres of land in southeastern Colorado in 1968 for $17,500,000. The cost of using this land today exclusively for the reintroduction of the black-tailed prairie doga. Is zero, because they already own the land. b. Is zero, because the land represents a sunk cost. c. Is equal to the market value of the land. d. Is equal to the total dollar value the land would yield if used for farming and ranching.

c. Is equal to the market value of the land

Explanation:

When deciding the cost of using an asset such as land for something, the best cost to use is the opportunity cost of the land. What would the US Government be doing with the land if they were not turning it for use for the black-tailed prairie doga.

As there are no other alternatives, this cost will therefore be the market value of the land because this is the amount that the Government could get for the land if they sold it instead of using it for the black-tailed prairie doga.

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