16. Economic rents (S11.3) How would your answer to Problem 15 change if technological improvements reduce the cost of new BG production facilities by 3% per year? Thus a new plant built in year 1 would cost only 25 (1 − 0.03) = $24.25 million, a plant built in year 2 would cost $23.52 million, and so on. Assume that production costs per unit remain at $65.