Problem
According to Professor Paul Romer (Nobel prize-winning economist interviewed in the article), why might firms need to charge higher prices to increase their output of health care equipment but be reluctant to do so? Based on Professor Romer's response, does he view the health care industry as a "constant cost" or "increasing cost" industry? (See pp. 180-182 in Chapter 8 of the McEachern text for an explanation of the difference between a "constant cost" and "increasing cost" industry). What is the significance of the difference between an increasing cost vs. constant industry for producing to meet the demand for health equipment and services during the Covid pandemic?