General Discussion
In reply to the discussion: If Dems won the election, why is ANYONE talking about a 3:1 ratio of spending cuts/tax increases??? [View all]jmowreader
(53,271 posts)R&D, and limited production.
Say it cost $80 million to invent the iPad, and $80 million to invent a new antiitank missile. Then let's say it cost $80 million to build an iPad factory and the same to build a missile factory.
Apple has sold 80 million iPads since they were introduced. The startup costs add $2 to each unit.
The Army might buy 1000 launchers because they won't make less, and 10,000 missiles, with an option to build another thousand a year so the company will have reason to not tear out the missile production line and replace it with a saucepan manufacturing line. (This is one of the reasons the military gets weapons they don't ask for.) The startup costs add over $14,000 to the price of each unit.
There are things you have to do when you make shit that it's illegal to sell to civilians, and one of them is charge outrageous prices for it.