Suppose in the leader country (Country 1) there is a rise in the cost of innovation at every level of technology gap (A 1 /A
Suppose in the leader country (Country 1) there is a rise in the cost of innovation at every level of technology gap (A1/A2), possibly caused by factors influencing the cost of innovation only. Show how these graphs will be affected as a result of this new change.
Suppose there is a population growth increases the number of workers available to both the countries by the same amount. Show how these graphs will be affected as a result of this new change.
\fFIGURE 8.2 Cost of Copying for the Follower Country Cost of copying, Mc M; c(A, /A2) A,IA2
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