Many economists would argue that private companies are likely to be more efficient than the government at operating airlines. Yet many economists would also argue that there is a valid reason for government to regulate the safety of those same airlines. Can you explain why the government might be good at ensuring safety, even though it might not be good at operating the airlines?
I am doing this for a discussion question, I need help answering
Solution
Private busieness focus on profit maximization and there is a chance of them compromising on quality of service and the safety to fulfill this goal. When govt acts as a regulator , its goal is to ensure safety of the passengers and they do every thing to achieve this goal.Essentially , our actions are driven by our objectives.
Govt airlines don\'t function well as they are inefficient and there is less care about proper utilization of public money. In case of private airlines , there is a clear profit motive.
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Many economists would argue that private companies are likely to be mo.docx
1. Many economists would argue that private companies are likely to be more efficient than the
government at operating airlines. Yet many economists would also argue that there is a valid
reason for government to regulate the safety of those same airlines. Can you explain why the
government might be good at ensuring safety, even though it might not be good at operating the
airlines?
I am doing this for a discussion question, I need help answering
Solution
Private busieness focus on profit maximization and there is a chance of them compromising on
quality of service and the safety to fulfill this goal. When govt acts as a regulator , its goal is to
ensure safety of the passengers and they do every thing to achieve this goal.Essentially , our
actions are driven by our objectives.
Govt airlines don't function well as they are inefficient and there is less care about proper
utilization of public money. In case of private airlines , there is a clear profit motive.
