Write down the equation to calculate the innovation rent. How much is the innovation rent?

Ani to b) The total cost of technology A: WLAt PRA CA = 10 X 8 + 20 x y CA = 80 + 81 CA = 160 The total cost of technology B: why + phe CB = 10 x 2 + 20 70 12" CA = 20 + 240 if = 260 The iso cost line equation is given by C = Wh t Rp cs Scanned with CamScannerDate A The iso cost line for technology A ! CA = WL + PR 160 = 101 + 20 R 20 R = 160 - 101 R = 160 - 10 L 20 20 R = 8 - IL 2 Thus iso cost line for technology A is R = 8 - 0. 5 1 The isocost line for technology B: CB = WL + PR 260 = 101 + 20 R 20R = 260 - 101 R = 260 20 20 R = 13 - 1 2 R = 13 - 0'5 L Thees is ocast- line for technology B is R = 1 3 - 6. 51 CS Scanned with CamScanner