From: Martin Minow <minow@apple.com>
Date: Sun, 4 Aug 1996 03:09:27 +0800
To: cypherpunks@toad.com
Subject: Re: fbi, crypto, and defcon
In-Reply-To: <v02120d08ae2866db0ddc@[192.0.2.1]>
Message-ID: <v03007801ae2933d82e72@[17.219.102.152]>
MIME-Version: 1.0
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Lucky Green opines:
>
>An international phone call costs about 2 cents/min to produce. The average
>rate paid for by the consumer is 62 cents. That's means the carriers mark
>up this particular product by an amazing 3000%.
>
>Can you name another business that has comparable mark-ups?
>

Well, software comes to mind.

In the international telephone case, you are paying 2 cents for the
call, and 60 cents for being able to place the call when you want to.

It's time for a story:

Once upon a time, Westinghouse's chief turbine engineer was called
to a power plant to diagnose a problem. He walked around the turbine
for a while, listened to it, thought for a bit, then took out a piece
of chalk and drew an X on the housing. "There is a bad bearing here;
replace it."

Westinghouse sent a bill for $10,000 for the diagnosis.

The power plant objected to the sum and asked for an itemized invoice.

Westinghouse sent: $0.05 for the chalk, $9999.95 for knowing where
to put the chalk.

Martin.