In 1977, a medication to fight heart disease cost $1,000 and had a mortality rate of 80% after 1 year. Surgery cost $25,000 and had a mortality rate of 60% after 1 year. In 2012, a medication to fight heart disease cost $150 and has a mortality rate of 30%. Surgery costs $10,000 and has a mortality rate of 10%. As a result of technological improvements, in this particular case medical costs can be expected to escalate. Is this response to technological advances typical for most products in the economy, or unique to healthcare only? Discuss why or why not, using the market for cell phones for comparison.

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The Answer of In 1977, a medication to fight heart disease cost $1,000 and had a mortality rate of 80% after 1 year. Surgery cost $25,000 and had a mortality rate of 60% after 1 year. In 2012, a medication to fight heart disease cost $150 and has a mortality rate of 30%. Surgery costs $10,000 and has a mortality rate of 10%. As a result of technological improvements, in this particular case medical costs can be expected to escalate. Is this response to technological advances typical for most products in the economy, or unique to healthcare only? Discuss why or why not, using the market for cell phones for comparison.

In 1977, a Medication to Fight Heart Disease Cost $1,000