Micro economics homework Assignment Example | Topics and Well Written Essays - 500 words

Micro economics homework - Assignment Example Another comment the journalist made is that security screening should be shared by the rich and the poor alike. This notion is acceptable since airline companies guided by the principles of profit making by minimizing their costs and thus, they would not agree to this notion. It will be expensive to provide uniform security checks without comprising the quality of their services as a result airline3 companies won’t be able to meet the needs of the rich. The best way to do this is by government subsidizing the services offered by these airline organizations therefore sharing costs. This will minimize the operation costs of the organization resulting into equality in provision of services. The last comment is based on the government interference in making this class based discrimination formal (Lind, 1). This notion is uncalled for since the role of the government is to take care of the economic needs of its citizens equitably. The government can mitigate the rise of discriminative policies in relation to security checks by initiating price control measures in the provision of such services for the aim of preventing exploitation of the rich through exorbitant air fares and reduction of class based air travel. However, this move is likely to fail because the American State has a liberal economy where the market determines the prices of goods and services. There are a variety of reasons as to why the airlines offer priority based on frequency of flying, and one major reason is to improve its profits. Airline companies don’t care a person’s age cluster, femininity or disabilities; their driving factor is the ability of a person to use their services. Therefore they offer incentives with the aim of retaining their clients. By offering priority of its clients through their frequency of flying, the airline companies are practicing the principles of absolute