One of the great ambitions of billionaires such as Sir Richard Branson and Elon Musk is to commercialize spaceflight travel. Unlike Sir Richard Branson, however, Elon Musk has taken the step further by launching the first-ever privately owned jet (SpaceX) to the International Space Station (ISS) in May 2020.

Why are there a limited number of facilities (host offices, launchpads, factories, and test facilities) for SpaceX that produce commercial rocket aircraft and thousands of plants run by hundreds of firms that produce light bulbs? Explain in terms of economies of scale. (6marks)