Answer to Question #164877 in Microeconomics for Nazrin

Question

Bonus question (10 Points): U.S. to Rely on Russia for Astronaut Transportation Into 2019;

NASA move reserving additional seats for American crews highlights challenges of developing U.S.

vehicles, NASA will continue using Russian spacecraft to take American astronauts into orbit for two

more years. Since retirement of NASA’s space shuttle fleet six years ago, U.S. astronauts have relied

entirely on Russian rockets and capsules to reach and return from the space station.

As part of the overall

package, NASA also acquired the option for the three additional seats on Russian spacecraft in 2019.

Now, those seats have been definitively reserved for U.S. astronauts. The five seats cost NASA a total of

$373.5 million, or about $75 million per astronaut.What is 75 million USD? Which concept best explains $75 million?

Answer 1

75 million USD is the average per-seat price. Vehicle Sustaining Engineering Contract.