The Federal Aviation Administration is a government agency that is in charge of air traffic control....

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Economics

The Federal Aviation Administration is a government agency thatis in charge of air traffic control. All of the capital equipment(radar, etc.) used by air traffic controllers is purchased throughappropriations from Congress. When Apple Corporation purchases newcapital equipment, the decision is made by owners and managers thatbelieve the firm can get a return on investment from the newcapital because the new capital can be used to produce new andimproved goods for Apple customers. Which entity is likely to havemore outdated capital and capital in need of repair or replacement?Why? Explain in detail.

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The Federal Aviation Administration would have more outdated capital and capital in need of repair or replacement The Federal Aviation Administration being a government agency is established and operate with a purpose of achieving public objectives and as a tool to serve the governments objective of providing service to the people rather then earning and maximizing their profits The private corporations on the other hand are driven by profit maximization motives and channelize all their effort and investments in that direction When entities make investment See Answer

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