You assume that money is the only reason for people to to develop new medical devices. People could also do so because it helps people. Because the technology is awesome. Any number of other reasons. There is ample evidence that creative workers are DE-incentivized by money.
If money IS the only incentive, then reduced profits on device A might cause them to expand by developing device B.
Money isn't the only incentive but it is an important one especially for publicly traded companies. You need lots of money to develop and test new medical devices.
There is ample evidence that creative workers are DE-incentivized by money.
If this were true then companies that succeed in producing new, creative high tech products would pay their most creative employees very little. We don't observe this.
Another month has passed and here is a new rationality quotes thread. The usual rules are: