Chapter 1, Problem 1TC

To determine

Economic incentive.

Explanation of Solution

Google is adding to its growing list of technological innovation by partnering with Swiss pharmaceutical company Novartis to develop smart contact lenses to help patients manage the diabetes. The increase in the number of people suffering from diabetes leads to increase the demand for smart contact lens and it easy to monitor their blood sugar levels. Here the lower costs and higher demand increase the profitability of smart medical devices. Google and Novartis respond to the economic incentive provided by these higher profits.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity. And it is motivates an individual to perform an economic action.