Re: Vision of the three Rs: Regular, Reliable and Reusable

Ian Woollard <ian.woollard@xxxxxxxxx> wrote:

:Derek Lyons wrote:
:> In other words - pork and handouts.
:
:Yeah, it's a subsidy on water in LEO/GTO.
:
:I believe I'm right in saying that subsidies can be economically
:justified in situations where the long-term situation is one where the
:lower prices are going to be in line with the subsidy.

It's not quite that simple. It assumes there is a 'knee' in the cost
curves which must be overcome in order to get down to the subsidized
price AND that the 'knee' is related to scale of operations. In other
words, this only works depending on very specific curve shapes and
very specific economies of scale.

--
"The reasonable man adapts himself to the world; the unreasonable
man persists in trying to adapt the world to himself. Therefore,
all progress depends on the unreasonable man."
--George Bernard Shaw
.

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