Figure 1
The vertical axis of the line graph is labeled “Welfare” and ranges from 0 to 300 in intervals of 50. The horizontal axis is labeled “q - complexity of tecnolonogical level.” The first marking is at 0. Then the axis ranged from 0.10 to 0.85 in increments of 0.05. A legend at the bottom indicates that the solid line represents “Baseline” and the dashed line represents “Lower Initial K.” The line for “Baseline” starts at (0.048, 191), and increases in a concave up nature to (0.44, 255), and continues in a concave down nature to end at (0.87, 272). The line for “Lower Initial K” starts at (0.048, 74) and follows a similar nature but remains below the “Baseline” line at all points. The line increases in a concave up nature to (0.50, 147), and continues in a concave down nature to end at (0.87, 254). Note: All the numerical values are approximated.Level of complexity of the technology and welfare for two economies with different initial capital. Baseline: K(0) =550; ; ; ; Lower Initial K: K´(0) =300; ; and = 0.03