Final answer:
Raw land is most commonly appraised using the Market Approach, which compares the subject land to similar properties. Marginal analysis helps determine the optimal amount of land to be restored by equating marginal cost and marginal benefit.
Step-by-step explanation:
Raw land is generally appraised using the Market Approach. This approach compares the land being appraised to similar properties that have been sold in the area, adjusting for differences to reach an estimate of value. While other approaches such as Cost, Income, and Highest and Best Use can also inform the appraisal process, the Market Approach is the most direct and commonly used for raw, undeveloped land.
When considering the restoration of land, marginal analysis can be applied to determine the optimal amount of land to be restored. This involves calculating the marginal cost and marginal benefit at each quantity (acre) of land. The optimal amount of land to be restored is reached when the marginal benefit equals the marginal cost—if the marginal benefit exceeds the marginal cost, more land should be restored; if the marginal cost exceeds the marginal benefit, less land should be restored.