A variable aperture zoom lens costs less fixed aperture zoom lens because it means the glass elements can be smaller. Minimally, a lens elements must be sized to fill the iris diaphragm with light. The diameter of the iris diaphragm is (focal length / f-number), e.g. a 200mm f/2.8 lens has an iris diaphragm of 200 ÷ 2.8 = 71.4mm...and thus, a 70-200mm f/2.8 zoom must also have an iris diaphragm diameter of 71.4mm at the long end, although a smaller diameter is needed at the 70mm end of the zoom.
An easy example to see this is the 100-400mm f/4.5-5.6L IS zoom - at the long end, the diameter of the iris diaphragm (and thus, the glass elements needed to fill it with light) is 71.4mm (same as 200/2.8 - twice the focal length, 2-stop narrower aperture). If that lens were to be a 100-400mm f/4.5 lens, the diameter would need to be 88.9mm to support 400mm f/4.5. That's closer to a 400/4 or 200/2 in element sizes than the current lens, so figure probably ~$5K for such a lens. Not exactly a consumer-friendly price like the current 100-400...
Thanks Neuro: Does it mean that the 70-200 mk.ii could possibly do 70mm @ f/0.98 ? (200/2.8 = 71.4, and 70/ 71.4 = 0.98) Since the lens element is large enough? So the lens potentially could be a Variable 70-200 f/0.98 -2.8L ? If they so chose to build it with similar glass elements?
Sort of reminds me of how Audio amplifier manufacturers cannot feasibly build a perfect voltage amplifer that doubles wattage when the impedance is halved as theoretically it should. so lets say a 100watt amp into 8 ohms should do 200 watts into 4 ohms. So what they end up doing is over building/ under speccing their amps . So in this example they will build a 130 watt into 8 ohm amplifier and this gives about 200 watts into 4 ohms, and they call it a 100 watter...